Near-term gains factored in, rally may not hold in aviation, hotel stocks

Rise in costs, lower realisations could keep profitability under pressure

Led by Lemon Tree Hotels and SpiceJet, which are up 69-92 per cent over the past month, aviation and hotel stocks have been the biggest gainers over this period.

The expected availability of vaccine late December or early next year, a rise in leisure travel, an increase in the cap on load factors, and expected market share gains for larger players have led to the rally in the two sectors. Binod Modi of Reliance Securities says that improved prospects of Covid vaccination resulted in a rebound in these sectors, which were under pressure on worries of a late recovery from the