Indian stocks primed for the country’s hosting of the Cricket World Cup have spiked leading up to the 45-day event’s start. More gains may be in the pipeline.
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Indian stocks primed for the country’s hosting of the Cricket World Cup have spiked leading up to the 45-day event’s start. More gains may be in the pipeline.
A Bloomberg index of stocks that are set to benefit from the tournament has gained about 20% in the last three months. Shares related to food delivery, alcoholic beverages, travel and other consumer sectors — including Zomato Ltd., United Spirits Ltd. and Indian Hotels Co. — will continue to see “positive” impact from the quadrennial event, Jefferies said in a note Wednesday.
The hype surrounding the event underscores how India has become the mecca of cricket, with the tournament expected to boost the Asian economy by as much as $2.6 billion. Consumer spending tied to the games is likely to galvanize the country’s stock market, which has lost some momentum in recent weeks after two straight quarters of gains.
“While Indians are hoping for a win, investors and brands are also expecting a strong December quarter, coinciding with the festive season,” a team of Jefferies analysts led by Vivek Maheshwari wrote in the note.
Restaurant Brands Asia Ltd. , which operates Burger King franchises, climbed as much as 5.8% on Thursday as the World Cup kicked off. Network 18 Media & Investments Ltd., a media company controlled by billionaire Mukesh Ambani, soared 6.8%.
Average hotel room rates during India’s match days have shot up 150% from the prior week, while flight fares jumped 80%, according to Jefferies.
Indian Hotels, which runs the Taj Group of hotels, rose 3%. Chalet Hotels Ltd. climbed as much as 3.9% to an intraday-record high while InterGlobe Aviation Ltd. jumped 3.6%.
–With assistance from Ashutosh Joshi.
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