India always witnesses the cricket fever engulfing the entire nation during World Cup tournaments and to add on, the 2023 World Cup cricket tournament is being hosted in India after 12 years.
This ongoing World Cup season is affecting the country’s stock market. Noting that this massive event is spread across 10 cities the sectors like travel, tourism, hotels, food, beverages, and advertisement majors will be the prime beneficiaries.
The extent to which the World Cup may affect India's stock market depends on a few factors:
Investor Sentiment: Sporting events like the World Cup can influence investor sentiment. If the Indian national team is performing well and there is a sense of national pride and unity, it might positively affect investor sentiment. Positive sentiment can lead to increased buying activity in the stock market, potentially boosting stock prices.
Consumer Spending: During the World Cup, there might be increased consumer spending on items like televisions, jerseys, and other merchandise related to the event, increasing consumer spending which benefits the companies producing and selling these products, potentially leading to higher stock prices for these firms.
Broadcast and Advertising: The World Cup is a high-profile event that attracts significant viewership, and advertisers may spend more on commercials during the tournament. Media and advertising companies could benefit from increased ad revenue, potentially impacting their stock prices.
Trading Volume: The World Cup can lead to changes in trading volume. Some investors may be distracted or less active in the markets as they focus on the tournament, which can affect trading volumes and potentially lead to price fluctuations.
Economic Impact: Major sporting events can have a positive impact on a country's economy through increased tourism, hospitality, and associated businesses. This can indirectly benefit the stock market by boosting the financial performance of related sectors.
Some of the Indian stocks that investors can keep an eye on during this World Cup season are:
Reliance Industries: The company’s food, beverage, and electronics business tend to see major sales uptick during any massive event like the ICC World Cup. The company via its network of subsidiaries holds significant control in Den networks, Hathway Cable, and Datacom Limited, having a dominant market share in the cable broadband market in India which is likely to see demand pick up during the event.
The Indian Hotels Company Limited: The Indian Hotels Company stock could benefit immensely. The company provides management services to hotel chains, including Taj, Vivanta, Ginger, The Gateway, SeleQtions, and Trails. Most hotels are expecting 100% occupancy in October-November 2023 and their demand is also likely to trigger a 150% surge in costs.
Jubilant FoodWorks Limited: Another sector that can benefit from this World Cup is the retail food industry. This is a retail food-based company that sells ready-to-eat food through some well-known domestic and international brands. The company holds master franchise rights for two international brands Domino’s Pizza and Dunkin Donuts.
IndiGo: Despite the downed trend of this stock, analysts believe that the aviation industry is expected to benefit considerably from the World Cup season. This company offers air transportation, pre-flight and post-flight cargo handling, and other elite services at several Indian and international airports.
IRCTC: It is another travel option for Indians who cannot afford flight tickets or because of unavailability of flight tickets. It manages the fourth-largest railway network in the world. It is a mini-ratna public sector company that offers Internet ticketing, catering, and tourism services exclusively to passengers traveling via Indian Railways.
Zomato Ltd: It is an online food delivery platform that may experience increased order and restaurant partnerships during the World Cup, especially for home viewing parties. They can leverage marketing campaigns and special offers to attract more users.
Network 18 Media Investments Ltd: With interest in television, print, digital, and OTT platforms including BookMyShow, this ticketing partner for the World Cup is well positioned to benefit from the surge in viewership and ticket sales during tournaments.
Entertainment Network Ltd: With the V-shaped recovery and promising growth, this media partner is poised to thrive as advertisers look to capitalize on the heightened viewership during the World Cup.
Varun Beverages Limited: This PepsiCo distributor can benefit from the ICC World Cup through increased soft drink sales, promotional campaigns, and potential partnerships. Sporting events boost beverage consumption and offer marketing opportunities.
United Spirits: As a liquor company, this may see increased sales during the World Cup event as consumers celebrate by purchasing alcoholic beverages. As the gaming season pumps up with the number of Live Cricket viewing parties and sporting events the need for the consumption of beverages also grows up.
In conclusion, this ICC men’s Cricket World Cup 2023 in India is not just a celebration of cricket but a significant economic opportunity for various businesses. As The public is under the cricket spell, these companies stand to gain from increased sales, occupancy rates, and demand for their services.
Comments
Write Comment