Aviation and hotel stocks soar sharply on coronavirus vaccine hope

The prospect of faster-than-expected economic recovery on the back of successful Covid-19 vaccine trials has resulted in a sharp surge in aviation and hotel stocks.

Shares of most companies operating in these sectors have outperformed the markets this month as investors were seen rotating out of 2020 winners such as IT and pharma and buying into sectors that were badly bruised because of the Covid-19 pandemic.

For instance, Indian Hotels, InterGlobe Aviation, SpiceJet, and EIH have gained between 18 per cent and 26 per cent in November. In comparison, the benchmark Sensex has gained 11 per cent.

The gains have been underpinned by positive data on Covid-19 vaccine trials by drugmakers Pfizer and Moderna.