Aviation and travel-related stocks faced significant selling pressure following Prime Minister Narendra Modi’s call for citizens to avoid non-essential foreign travel and embrace fuel-saving practices amid global uncertainties linked to the West Asia crisis. InterGlobe Aviation, parent company of IndiGo, saw a 6.88% decline, while SpiceJet shares fell over 4% and GMR Airports slipped nearly 4%. The travel agency sector also experienced selling pressure due to concerns about a potential decline in overseas travel demand.
Thomas Cook India shares dropped by 5.02%, reaching an intraday low, and TBO Tek shares fell by 5.7%. Le Travenues Technology Ltd (Ixigo) shares traded 2.8% lower. Moreover, jewellery-related stocks, including Titan, Kalyan Jewellers, Sky Gold and Diamonds, Senco Gold, and BlueStone Jewellery and Lifestyle, witnessed a significant decline of up to 12%.
The market reaction followed PM Modi’s appeal to conserve foreign exchange reserves by avoiding unnecessary overseas trips, destination weddings, and non-essential foreign travel. During a public meeting in Secunderabad, he emphasized the importance of economic discipline and prudent consumption amidst global supply chain disruptions and rising energy costs. PM Modi also encouraged reducing petrol and diesel usage by utilizing public transport and car-pooling when necessary.
In the current scenario, saving foreign exchange has become crucial for the nation, as stated by PM Modi. He also recommended re-adopting COVID-19-era practices like work-from-home, virtual meetings, and digital conferences in the national interest. However, equity benchmarks Sensex and Nifty traded 1% lower each as the US and Iran failed to reach a peace agreement related to the West Asia conflict.
