Indian Stock Exchange Launches Index to Track Travel Listings — India Report

20.06.2024 - 06:01 / skift.com / Bulbul Dhawan

India’s National Stock Exchange has launched the Nifty India Tourism Index to capture the performance of travel and tourism companies within the Nifty 500 Index. The index is used by investors to manage their investment portfolios and serve as a benchmark for different purposes, including tracking expected returns of certain segments. 

The creation of a separate stock market index for tourism indicates significant demand and investor interest in tourism and travel related stocks in India. Recent stock market debuts of TBO Tek and Ixigo reflect strong investor sentiment towards the industry. 

The index is tracking the performance of companies across all these sectors. Companies such as IndiGo, EaseMyTrip, BLS International, Oberoi Hotels and Resorts, GMR Airports Infrastructure, Lemon Tree Hotels, Chalet Hotels, and Mahindra Holidays and Resorts India have been included in the index to track the sectoral movement.

This initiative is in line with NSE’s recent endeavors to cater to emerging market trends. The other industries for which NSE has sectoral indices include banks, autos, FMCG, pharmaceuticals, information technology, realty, healthcare, oil and gas and more.

Travel Industry in India: The index has been created when there is a strong push towards development of the tourism and travel sector in India. Travel and tourism are two of the largest industries in India, with a total contribution of about $199.6 billion to the country’s GDP, according to India’s branding and communication arm India Brand Equity Foundation (IBEF).

The government has been working to introduce several schemes to promote domestic tourism, even as its global promotion budget reduced by 97%. The aviation sector is expanding, as more airports are being opened to serve the smaller cities. Meanwhile, airlines including IndiGo and Air India have placed significant aircraft orders to expand their domestic and international operations. 

Hotel chains are also looking at Tier 2 and Tier 3 cities to drive their growth. 

Full-service carrier Air India has unveiled a three-class configuration for its newly inducted A320neo narrowbody aircraft. The airline will offer Business, Premium Economy, and Economy cabin classes on domestic and short-haul international routes. 

The airline is working to introduce the three-class configuration across its entire narrowbody fleet over the next year. Its existing fleet is being inducted for refit, and the new aircraft will be delivered in accordance with this configuration, the company said in a statement. 

The new configuration will be available starting July 1 on Delhi-Bengaluru and Delhi-Chandigarh routes. 

Indian aviation and hospitality conglomerate InterGlobe Enterprises is set to launch a