Synopsis
Just a month back the headlines were about the Nifty and Sensex touching new highs. The clamor on the street was: Buy! Today the mood is one of despair and the talk is all about corrections and a very negative market breadth. The question is: Has this decline got anything to do with macro developments in any sector? In most cases, no. But, at the same time, there is no denying that valuations are expensive in most sectors. Now, to another question: Is there any sector where things are improving, and given that overall economic growth is on track, are likely to continue improving? The answer is yes. There are still sectors and spaces displaying inherent strength. This corrective wave may be an opportunity to look at them.
Thirty years back, in 1994, when the Indian market witnessed the first bull run after the Harshad Mehta scam, at the top of the gainersβ list was the hotel sector. In those days, the logic offered in brokerage research reports β which used to come out infrequently and were miniscule in numbers β was that as the Indian economy opens up, more foreign business travelers would flock to the country. That would lead to higher occupancy β and as it is
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