Pharma stocks rally on buzz about new Covid variant, travel stocks sink

Huge gains for Cipla, Alkem Labs and Dr Lal Path, even as IndiGo, Chalet Hotels and IHC tank

The heavily-mutated coronavirus variant detected in South Africa hampered shares of companies that benefit from travel, while benefiting those in the healthcare sector. Multiplex chain PVR and the country’s largest airline InterGlobe Aviation saw their shares tumble 10 per cent each. In the hotels space, Chalet Hotels and Indian Hotels fell 14 per cent and 11 per cent, respectively, on worries that the new variant could put a stop to travel once again. On the other hand, healthcare stocks shot into limelight once again. Pharma majors Cipla, Alkem Laboratories and diagnostic chain Dr Lal PathLabs each rose 7 per cent.