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Aviation stocks like SpiceJet, Interglobe Aviation (IndiGo), and GMR Airports saw their share prices fall by up to 5% in Monday's trading session. The fall in the aviation stocks came amid rising fuel costs, the US-Iran war and PM Modi's appeal to citizens to rethink the growing preference for overseas weddings, holidays, and leisure travel.
IndiGo share price led the pack by falling over 5.03% to ₹4,296 apiece on NSE. This was followed by GMR Airports' share price down over 3.25% and SpiceJet shares over 2% on Monday.
Speaking at a public event at Parade Ground in Hyderabad, PM Narendra Modi appealed to citizens to rethink the growing trend of overseas weddings, holidays, and leisure travel. He urged people to avoid foreign trips for at least a year in light of the ongoing global uncertainty.
Aviation stocks experienced a decline due to rising fuel costs, the US-Iran conflict, and Prime Minister Modi's appeal to citizens to reconsider overseas travel and weddings. This led to a drop in share prices for companies like IndiGo, GMR Airports, and SpiceJet.
Prime Minister Modi urged citizens to postpone overseas weddings, holidays, and leisure travel for at least a year to conserve foreign exchange reserves and support the domestic economy. This appeal has contributed to concerns about the travel sector, including airlines.
India's significant dependence on crude oil imports means that increases in global oil prices directly impact aviation fuel costs. This leads to higher airfares and overall travel expenditures, negatively affecting the profitability and stock prices of aviation companies.
Hotel stocks, including those of Chalet Hotels and Lemon Tree Hotels, dropped following PM Modi's call for citizens to reconsider overseas travel and prioritize domestic tourism. A shift towards domestic travel could potentially benefit hotels and other local enterprises.
PM Modi appealed to citizens to prioritize domestic travel, reduce fuel consumption, revive work-from-home practices, and avoid non-essential foreign travel and gold purchases for at least a year. These measures aim to conserve foreign exchange and support the local economy amid global uncertainties.
Stressing the importance of national responsibility during difficult times, the Prime Minister encouraged citizens to focus on domestic travel and contribute to strengthening the local economy.
He further called on people to embrace a lifestyle guided by “national responsibility” to help the country tackle issues such as inflation, supply chain disruptions, and rising energy costs.
As part of his appeal, he asked Indians to cut back on overseas vacations and destination weddings abroad for at least a year, underscoring the importance of reducing pressure on the country’s foreign exchange reserves. He added that conserving foreign exchange during volatile global conditions is a patriotic step and also encouraged citizens to prefer locally manufactured products over imports whenever feasible.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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