While India and its various industries are still finding their footing after the two most hard hitting years by the COVID-19 pandemic, they are being rattled again by the new coronavirus variant – omicron. No industry is untouched by the wrath of this disease. From shopping, dining and eating to travel, aviation, and trading, all sectors are witnessing a familiar dread about the renewed restriction. On similar lines, a seasoned market analyst and lobbyist Deepak Talwar, shares insights on omicron’s devastating effects on the market, hospitality, and aviation industry of India.
He states, “It is being noticed that the stocks of the aviation industry, hospitality sector, travel services, entertainment segment and many others are falling down due to the outspread of coronavirus’s new variant, omicron.” He adds, “There is a fear of another lockdown being imposed by many countries among investors who have invested in these sectors. And, India might not remain immune from it. Industries that have still not recovered from their earlier losses will be impacted adversely once again. Due to this, the market is noticing a decline in the stocks.”
Notably, the shares of hotels and airlines have tumbled. In the aviation sector, the shares of IndiGo fell down to Rs. 1,840 by 2.03 per cent and SpiceJet recorded a downfall at Rs. 70.50 by 6.25 per cent. Whereas, if we look at the shares of the hotel sector, Indian Hotels was recorded to trade at Rs. 175.75, 3.70 per cent lower and East India Hotels was 5.77 per cent down at Rs. 119.95. Also, Oriental Hotels fell by 2.78 per cent at Rs 34.95.
Alongside, creating a feeling of unrest among investors, the shares of Easy Trip, an online travel booking portal was also down and are trading 4.99 per cent lower at Rs. 499.25. The railway travel online booking company IRCTC was also trading 5.47 per cent lower at Rs. 778.
The hospitality industry, which was slowly inching towards normalcy and waiting for the much-needed breather from the earnings in the New Year is now starting at the cancellations because of the evident increase in coronavirus cases. Due to necessary restrictions being imposed and extended suspension of scheduled international flights till 31st January, the contract based sectors including tourism and hospitality are unfortunately top victims of the confinement.
Many lives are dependent upon domestic tourism, which saw a healthy rise post-August. While airports and railway stations were filled with travellers, restaurants and multiplexes got a golden chance of seeing a full house. All the hikes recorded in these sectors are again undergoing unfavourable descent.
The new coronavirus variant, omicron has drearily delayed the recovery of the aviation sector of India, both – domestic and international. Edelweiss Securities reports that smaller airlines remain at higher risk amid the outbreak of the latest coronavirus variant. Notably, passenger travel is presently at the lower position by 15 per cent of pre-COVID times.
Furthermore, CAPA, an aviation and consultancy firm, quotes that the demand for domestic passenger travel is expected to recover only by 70 per cent in FY22. In order to reach pre-COVID levels, it would still need more time, expectedly, the second half of the calendar year 2022.
In line with dozens of countries that are already using the technique of vaccination and booster shots, India will also start controlling the spread by introducing precautionary measures to the Indian citizens, hoping to put the running economy back on track.