Stocks of Indian hotel companies surge after RBI announces liquidity boost

• The Reserve Bank of India (RBI) announced a separate liquidity window for contact-intensive industries.
• According to the announcement, companies from these sectors will be able to apply for liquidity boost till March 31, 2022.
• The separate liquidity window has been allocated ₹15,000 crore.

The Reserve Bank of India (RBI) announced a fresh round of liquidity boost for the hotel industry, as well as tourism and travel operators, which has been amongst the most-severely hit industries due to the COVID-19 pandemic. In response, stocks of hotel companies zoomed by up to 20%.

In his announcement, RBI governor Shaktikanta Das revealed that the liquidity window of an additional ₹15,000 crore will remain open till March 31, 2022. The window is primarily aimed at the hotel and tourism industries, giving them access to loans to meet their working capital requirements.

Adjusting for the second wave of COVID-19, Das also revised the gross domestic product (GDP) estimates downward by 100 basis points or 1% -- from 10.5% to 9.5%.

Note: All the prices shown below are as of 11:30 am, June 4, 2021.

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