As concerns resurface about the coronavirus pandemic, with the detection of a new variant, Omicron, many countries have rushed to restrict flights and travel. Most analysts believe the recent correction in the market is a knee jerk reaction with headline indices in oversold territory.
Aviation stocks SpiceJet and InterGlobe Aviation (IndiGo), travel-related counters including Indian Railways arm Indian Railway Catering and Tourism Corporation (IRCTC) and hotel scrips — from the likes of Chalet, Asian Hotels, EIH, Mahindra Holiday, Oriental Hotels, Royal Orchid, Lemon Tree, Kamat, Taj GVK, all succumbed to negative territory after 18 nations imposed travel bans on South Africa.
SpiceJet shares ended 5.9 percent lower on Monday. IndiGo managed to end half a percent higher, having fallen as much as 4.7 percent during the session. The IRCTC stock fell 5.8 percent, and hotel shares declined between one percent and seven percent.
Travel restrictions are seen the world over as Omicron spreads. Scientists say the Omicron variant of COVID-19 carries concerning mutations that may make it more transmissible and allow it to evade immunity. However, several experts believe the current coronavirus vaccines are likely to be effective against Omicron as well.Â
Catch latest updates on the coronavirus pandemic and the new Omicron strain here
The Centre will be reviewing the SOPs on testing international passengers’ surveillance. The states are set to review the detailed travel history of international passengers. The Union Health Ministry revises guidelines on international travel from December 1.