Travel-related stocks, InterGlobe Aviation, SpiceJet, and IRCTC, jumped at the bourses on Tuesday after Pfizer Inc said its experimental Covid-19 vaccine was more than 90 per cent effective based on initial trial results, giving hopes that global economies may soon return to normalcy.
Pfizer and its German partner BioNTech SE said they had so far found no serious safety concerns and expected to seek US authorization this month for emergency use of the vaccine, raising the possibility of a regulatory decision as soon as December. If granted, the companies estimate they can roll out up to 50 million doses this year, enough to protect 25 million people, and then produce up to 1.3 billion doses in 2021. READ MORE
Individually, InterGlobe Aviation-run IndiGo leaped 7.3 per cent to hit an intra-day high of Rs 1,600 on the BSE. With today's gains, the stock is up 58.2 per cent on the BSE, as against 50.6 per cent rise in the S&P BSE Sensex since March 25, ACE Equity data show. Since June 8, when India began unlocking the economy, the stock has surged 25.24 per cent till Monday, compared with 24.2 per cent rally in the S&P BSE Sensex.
SpiceJet, on the other hand, rallied 6.6 per cent today, hitting a high of Rs 53.5 per share. Since Unlock 1.0, the low-cost carrier airline's stock has underperformed at the bourses and has gained 3.5 per cent, while gains since March 25 are around 57 per cent.
Stock of IRCTC, the company that has been carrying passengers even during lockdown, advanced 6.9 per cent on the BSE to hit an intra-day high of Rs 1,404 on the BSE.
While experts welcomed the first successful interim data from a large-scale clinical test as a watershed moment, they cautioned that they still needed to see the full trial data, which have yet to be peer-reviewed or published in a medical journal.
Accoring to a study by Inmarsat, as many as 83 per cent of passengers globally are reluctant to fall back into their old travel habits and 31 per cent will travel less often by air. The survey of some 10,000 frequent fliers conducted by the London-based firm and released on Tuesday showed that fear of infection means only just over one-quarter of people in the Asia-Pacific region say they feel confident enough to fly again within six months. READ MORE
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU