Stocks of Indian hotels rose up to 20% after the Reserve Bank of India (RBI) announced liquidity support for contact-intensive sectors like the tourism industry.
Royal Orchid Hotels jumped 10% to ₹92.70 on BSE, followed by EIH up 9.59% to ₹121.15, Taj GVK Hotels & Resorts advanced 7.68% to ₹147.20, Indian Hotels gained 6.35% to ₹144, and Lemon Tree Hotels rose 5.02% to ₹45. In comparison, the benchmark index, Sensex was down 0.11% to 52,174 points. Meanwhile, Kaya Ltd gained 10.40% to ₹347. Tour operators stocks Thomas Cook and Cox & Kings gained 5% each.
According to the announcement, companies from these sectors will be able to apply for liquidity boost till March 31, 2022.
Das announced a separate liquidity window of Rs 15,000 crore to mitigate the adverse impact of Covid 2.0 on certain contact-intensive sectors related to travel and tourism.
“In order to mitigate the adverse impact of the second covid-19 wave on contact-intensive sectors, a separate liquidity window of ₹15,000 crore is being opened till 31 March 2022, with tenors of up to 3 years at the repo rate,” Das said.