The Hindu Business Line : Bird flu fall-out — Hatcheries, hotel stocks decline; pharma cos gain

WEAK sentiment drove down the share prices of companies in hatcheries, food processing, and hospitality sectors on Monday following the reported incidents of bird flu.

In contrast, the prices of Cipla, which is launching the generic version of Tamiflu (the drug to treat bird flu) later this week, and other pharma stocks rose on expectation of higher sales.

The Pune-based Venky's Industries, which is in the hatcheries business, dipped by 6.74 per cent to end at Rs 144.55, compared to Friday's close of Rs 155 on the BSE.

The scrip opened down on negative sentiment at Rs 139.50 but recovered some of the losses at close. The counter attracted volumes of 3.17 lakh compared to the two-week average of 5,824.

Another counter that attracted selling pressure was SKM Egg Products. This Erode-based company lost 12 per cent to close at Rs 19.80. The counter attracted a turnover of 1.05 lakh, against the two-week average of 3,789.

Hospitality sector stocks were also down on fears that there would be a major decline in tourist inflows into the country if the bird flu cases assume bigger proportions.

EIH Ltd declined by 3.34 per cent to end at Rs 675 compared to Friday's close of Rs 698.30.

Another leading hospitality player, Indian Hotels, fell by 4.16 per cent to end at Rs 1,225.95 (Rs 1,279.20).

"As of now, we are seeing a sentimental impact. If the number of bird flu cases rise, it will impact the inflow of foreign tourists. Hospitality, travel and tourism sectors will be badly affected," said Mr Manish Sonthalia, Vice-President (Market Strategist), Motilal Oswal Securities Ltd.

According to him, the showpiece software sector may also get affected if the bird flu cases increase in coming days. "Right now, these are stray incidents."

Meanwhile, Cipla rose by 2.45 per cent on the BSE to end at Rs 542.15, compared to Friday's close of Rs 529.20.

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