Synopsis: Travel and hospitality stocks, including Yatra Online Ltd, Indian Railway Catering & Tourism Corporation Ltd, Thomas Cook (India) Ltd, and others, fell up to 6% after PM Narendra Modi urged frugal consumption, reduced fuel use, and postponement of foreign travel amid global uncertainty.
The major travel, tourism, and hospitality companies came under pressure on Monday after Prime Minister Narendra Modi urged citizens to adopt more frugal consumption habits amid rising global economic uncertainty linked to the Middle East crisis.
His remarks, delivered at a public meeting in Hyderabad, focused on reducing dependence on fuel and cutting non-essential spending to help ease pressure on India’s foreign exchange reserves.
The Prime Minister’s comments quickly drew attention across markets and policy circles, particularly because they touched on everyday consumption choices such as travel, fuel use, and household spending. He framed these measures as part of a broader national effort to navigate external economic shocks while maintaining stability.
What did Narendra Modi say?
Narendra Modi called on citizens to reduce the use of petrol and diesel, suggesting greater use of public transport like metros and encouraging carpooling wherever possible. He also urged people to revive work-from-home practices and rely more on online meetings when feasible, describing them as helpful during periods of global uncertainty.
He further appealed to citizens to postpone non-essential foreign travel, including destination weddings abroad, and to avoid discretionary purchases such as gold for at least a year. According to him, these steps would help conserve foreign exchange reserves at a time when global energy prices remain volatile.
Modi also suggested moderating edible oil consumption, linking it to both health considerations and national responsibility, and emphasized that “patriotism” today includes responsible everyday living rather than only actions on the border.
Travel, tourism, and hospitality stocks under pressure
Shares of major travel, tourism, and hospitality companies came under pressure on Monday after remarks from Narendra Modi. The comments triggered concerns in markets about a potential slowdown in discretionary spending, particularly in overseas travel and tourism-related demand.
Travel stocks lead losses
Travel-related stocks were among the top losers in Monday’s trade, falling sharply after concerns over weaker discretionary spending and reduced travel demand sentiment. The decline reflected broader market worries about a potential slowdown in the tourism and travel sector following calls for more frugal consumption.
Stock Name | CMP | Decline |
Yatra Online Ltd | ₹102.80 | 6.30% |
Thomas Cook (India) Ltd | ₹93.2 | 5.00% |
Easy Trip Planners Ltd | ₹ 7.72 | 3.50% |
Le Travenues Technology Ltd | ₹165 | 4.50% |
Indian Railway Catering & Tourism Corporation Ltd | ₹558 | 2.20% |
Hospitality stocks under pressure
Hospitality stocks also came under selling pressure in Monday’s trade, mirroring weakness in the broader travel and leisure space. The decline reflected cautious investor sentiment over potentially softer demand for hotels and related services amid calls for reduced discretionary spending.
Stock Name | CMP | Decline |
ITC Hotels Ltd | ₹159 | 3.40% |
Indian Hotels Company Limited | ₹665 | 2.45% |
Lemon Tree Hotels Ltd | ₹118 | 2.30% |
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