Indian Hotels jumps on bargain hunting

Indian Hotels Company jumped 4.7% to Rs 180.60, snapping its four-day losing streak amid bargain hunting.

The stock declined 16.8% in the past four sessions to end at Rs 172.50 yesterday, from its recent closing high of Rs 207.30 recorded on 23 November 2021.

The counter saw selling pressure after World Health Organization designated the variant B.1.1.529 a variant of concern, named Omicron. WHO said that it is not yet clear whether Omicron is more transmissible (e.g., more easily spread from person to person) compared to other variants, including Delta. The number of people testing positive has risen in areas of South Africa affected by this variant, but epidemiologic studies are underway to understand if it is because of Omicron or other factors.

Fresh buying was seen after news reports indicated lower risk from the Omicron variant of COVID-19 boosted sentiment.

On the technical front, the stock's RSI (relative strength index) stood at 39.755. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-days moving average placed at 195.38 but above its 100-days moving average placed at 168.44.

Indian Hotels Company and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj - the iconic brand for the most discerning travelers and the World's Strongest Hotel Brand as per Brand Finance 2021, SeleQtions, a named collection of hotels, Vivanta, sophisticated upscale hotels and Ginger, which is revolutionising the lean luxe segment.

The company reported consolidated net loss of Rs 120.58 crore in Q2 FY22 lower than net loss of Rs 230.01 crore in Q2 FY21. On a consolidated basis, net sales surged 183.78% to Rs 728.37 crore in Q2 FY22 over Q2 FY21.

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