Shares of Inox Leisure and PVR rise after govt. directive

Just today there was news that the government has by way of a directive has allowed cinema halls which are operating at 50 per cent limit occupancy, to accommodate more viewers. Soon after this news spread, shares of multiplex operators PVR and Inox Leisure rose up to 4 per cent on the BSE in an otherwise weak market.

Incidentally, the Ministry of Home Affairs (MHA) has allowed cinema halls and theatres to operate with more people and it will issue a revised SoP for the same. The new guidelines regarding Covid-19 protocols will be effective from February 1 onwards.

Following the news, the stock of Inox Leisure was up 4 per cent at Rs 326 while PVR ticked up 3 per cent to Rs 1,523 on the BSE in intra-day trade. In comparison, the S&P BSE Sensex was down 1.2 per cent or 589 points at 46,820, at 12:30 pm.

In the last one month, PVR (up 16 per cent) and Inox Leisure (up 14 per cent) have outperformed the market as compared to 1 per cent decline in the benchmark index.