PVR, INOX Leisure and hotel shares dip as rise in COVID-19 cases haunts Street

Multiplex cinema stocks dropped sharply on Monday as rising cases of coronavirus dampened sentiment. PVR share price dropped 2 percent lower while INOX Leisure plunged about 4 percent in trade in a weaker market.

Share price performance of PVR intraday

Meanwhile, hotel stocks also reacted negatively to the resurgence in the COVID-19 cases. Shares of EIH, Lemon Tree Hotels, Indian Hotels Company, Taj GVK and Resorts, Chalet Hotels among others dropped between 2 and 4 percent.

Maharashtra Cabinet will meet at 4 pm today amid rising covid19 cases to discuss additional measures to be taken to curb the spread of infection, a dealer told CNBC-TV18.com. This has likely put pressure on cinema and hotel stocks.

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This is at a time when the Maharashtra government has made it compulsory for the citizens to wear masks in public places except in open spaces.

India has been witnessing a surge in COVID cases over the past few days. As per reports, the nine new fatalities include four from Kerala, two from Uttar Pradesh and one each from Maharashtra, Karnataka and West Bengal.

Market participants fear that the resurgence in COVID-19 infections might weigh on the operations of multiplex and hotel companies and affect demand adversely.