The potential for Ayodhya to become a significant spiritual tourism destination has led to a surge of interest from investors in hotel, travel, and other tourism-related stocks, according to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He acknowledges the enormous potential for tourism-related businesses but advises caution, noting that many stocks in this sector have experienced rapid and substantial increases, exceeding 100 per cent in just a few weeks.
Vijayakumar attributes this surge to sentiment-driven rallies fueled by retail exuberance. He warns that the valuations of mid and small cap segments are excessively high, reaching frothy territory and driven in part by new retail investors and mid and small cap mutual funds experiencing strong inflows.
While recognizing the long-term prospects of Ayodhya tourism, Vijayakumar advises investors to exercise caution regarding valuations. He suggests that, for now, large-cap investments in sectors such as IT, capital goods, telecom, and select private sector banks may be safer options.
(With Agency Inputs)
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