Top gainers & losers of the day: Hotel, theatre stocks back in demand; selloff in IT

NEW DELHI: The domestic equity market opened with a gap up on Monday but immediately gave in to profit booking, which resulted in a spike in volatility throughout the session. The indices erased initial gains to finally end the session flat with a positive bias.

Ratings agency Icra revised its 2021-22 real GDP growth estimate for India to 9 per cent from an earlier 8.5 per cent on the back of widening coverage of Covid-19 vaccines, healthy advance estimates for kharif (summer) crop and faster government spending. It expects the second half of the financial year to have brighter prospects.

“The market is likely to consolidate at higher levels given the sharp runup in the past few weeks. Also, the market is increasingly witnessing rotation from outperforming sectors to undervalued stocks,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal.

A lot of macro data points would be released this week viz. PMI data across US, Europe and China along with US and UK’s GDP data and Japan’s MPC and keep the markets busy. Also we might experience some volatility ahead of the monthly F&O expiry scheduled for later in the week, said analysts.

Top gainers and losers of the day:

GAINERS

Hotel stocks: Shares of East India Hotels, Chalet Hotels and Indian Hotels were among the biggest gainers of the day. They rose 5-13 per cent on improving business conditions. As the vaccination has picked pace, more and more people are travelling, resulting in more room bookings.

Inox Leisure, PVR: Shares of theatre companies were in huge demand after the Maharashtra government announced reopening of cinema halls and drama theaters in the state from October 22, ahead of Diwali. They gained up to 9 per cent.

Real Estate: Realty names continued to create buzz for another day on news flows supporting their business. Prestige Estate Projects was among the biggest gainers, climbing over 8 per cent.

Zee Entertainment: Investors were not much worried over the persistent call for the removal of the CEO and the stock added over 1 per cent. The largest investor, Invesco, has reiterated its call for an extraordinary general meeting (EGM) to discuss the ouster of three directors and the inclusion of six independent board members, signalling that the tussle for control continues.

LOSERS

United Breweries: The stock declined over 3 per cent after Competition Commission imposed penalties totalling over Rs 873 crore on United Breweries, Carlsberg India, All India Brewers' Association (AIBA) and 11 individuals for cartelisation in the sale and supply of beer.

IT stocks: Eight of the top nine biggest losers in the BSE 500 index were from the IT sector. Mindtree was the biggest loser, down over 5 per cent. Others like KPIT Tech, HCL Tech, Coforge and Cyient fell 3-5 per cent.