Indian travel-related companies rose, led by Cox & Kings (COXK) Ltd., after Prime Minister Narendra Modi eased visa rules for U.S. tourists.
Mumbai-based Cox & Kings rallied the most in nine months. Thomas Cook (India) Ltd. advanced for the first time in six days. Indian Hotels Co., owner of the Taj brand of luxury hotels, ended a three-day drop. The S&P BSE Sensex (SENSEX) lost 0.1 percent to 26,597.11. The gauge is set to end seven straight months of gains, the longest run since January 2007.
U.S. tourists to India will be issued visas on arrival and identification documents for non-resident Indians will be merged into a single category, Modi said at an event at Madison Square Garden in New York City yesterday. The rule changes will be implemented very soon, he said. Modi will be hosted by President Barack Obama at the White House today and tomorrow.
“Investors expect more tourists to come after yesterday’s announcement,” Alex Mathews, head of research with Geojit BNP Paribas Financial Services Ltd., said by phone today. “Easing of rules for Indians living abroad may also lead to more travel activities.”
A person of Indian origin will get a lifelong visa for India, Modi said. The so-called PIO card will eventually be combined with the Overseas Citizen of India or OCI document, removing differences between the way groups of non-resident Indians were categorized and issued visas, he said to 20,000 mostly Indian Americans present at the event.
Cox & Kings jumped 11 percent, the most since Jan. 3. The stock had tumbled 9.4 percent last week. The government is using travel and tourism to promote growth and the boost to visas is a “positive development” for U.S. tourists, the company said in an e-mailed statement today.
