On Friday, hotel stocks in India saw a sharp drop, with shares falling up to 7% following rising border tensions between India and Pakistan. Indian Hotels Company saw the biggest decline, falling 6.8% to ₹698.75 on the Bombay Stock Exchange (BSE). EIH Ltd followed with a 6% drop to ₹334.20. Other hospitality companies such as Samhi Hotels, ITC Hotels, and Lemon Tree Hotels also lost nearly 4% each.
The stock market reaction came after a series of drone attacks by Pakistan across parts of Jammu and Kashmir. In response, India launched counterstrikes. Some districts in Rajasthan and Punjab, like Bikaner and Jalandhar, faced blackouts, sirens, and people taking shelter to stay safe.
These developments follow India’s missile strikes on May 6–7, which targeted nine terror camps in Pakistan and Pakistan-occupied Kashmir (PoK). In retaliation, Pakistan began shelling along the Line of Control (LoC), leading to the death of at least 16 civilians.
India’s Defence Minister Rajnath Singh confirmed that Operation Sindoor is ongoing. He stated that the mission has resulted in the elimination of at least 100 terrorists, though he did not share more details ahead of an all-party meeting scheduled for May 8.
On Thursday evening, Pakistan carried out another attack using loitering munitions—slow-flying drones that explode on impact—on important sites in Jammu and Kashmir. India responded by activating its air defence systems, which successfully intercepted the threats.
Later that night, Pakistan fired missiles across the LoC in regions like Satwari, Samba, RS Pura, and Arnia. Indian defence units reported that all 8 incoming missiles were intercepted and neutralised, avoiding major damage.
Rising tensions and ongoing conflict between India and Pakistan have had a direct impact on investor sentiment, especially in sectors like hospitality that rely heavily on stability and travel. Until the situation calms, hotel stocks may continue to face pressure.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 9, 2025, 12:05 PM IST
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