News of three confirmed cases of Human Metapneumovirus (HMPV) in India rocked airline stocks on Monday. Shares of Interglobe Aviation (IndiGo) and SpiceJet fell 5.6 percent and 4.6 percent, respectively, as jittery investors feared a return to the COVID-style travel restrictions that once crippled the industry.
“The market reaction is a knee-jerk reaction to the news of HMPV cases,” said G Chokkalingam, Founder and Head of Research. “It is too early to panic as we have seen the markets recover after the initial setbacks during the COVID wave.”
Hospitality stocks are facing turmoil
The tourism sector also suffered, with Indian Hotels Company (IHCL), Lemon Tree Hotels, and EIH down 6 percent. Mid-cap players like Advani Hotels and Juniper Hotels also declined by 5 percent and 5.6 percent, respectively.
The sentiment reflects fears of a reduction in travel rates and settlements, a situation reminiscent of the recession caused by the pandemic. However, experts believe that any long-term impact will depend on the severity of the virus and the methods of controlling it.
Hospitals are full of hope
While travel stocks fell, hospital stocks rose. Bengaluru-based Narayana Hrudayalaya rose 3.4 percent to Rs 1,355, while Rainbow Children’s Medicare gained 4 percent in intraday trade. Other notable gainers include Apollo Hospitals and Krishna Institute of Medical Sciences (KIMS), which rose 2 percent.
The increase in hospital stock reflects expectations of increased demand for health care. “Hospitals are likely to benefit in the short term as the health system prepares to deal with possible outbreaks,” a health analyst noted.
The government’s stance is reassuring
The Union Health Ministry has confirmed two cases of HMPV in Karnataka and one in Gujarat, stressing that the virus has already spread globally. “There is no unusual operation for Influenza-Like Illness (ILI) or Severe Acute Respiratory Illness (SARI),” the ministry said, adding that India’s preparedness is strong.
Market outlook: It’s too early to call it a disaster
Chokkalingam stressed that unless HMPV causes high mortality and travel restrictions, fear-driven sales will end. “If necessary, goals can be fast-tracked through the cooperation of companies and governments,” he added.
For now, the market remains divided, with airline and tourism stocks leading the way, while healthcare stocks are enjoying short-term gains.
