NEW DELHI: Shares of multiplex chain operator PVR declined up to 2 per cent on Wednesday following an order to close cinemas in the national capital amid rising number of COVID cases.
PVR dipped 1.98 per cent to settle at Rs 1,260.55 on BSE. During the day, it declined 3.49 per cent to Rs 1,241. INOX Leisure, which tumbled 2.83 per cent to Rs 341.60 during the day, bounced back at the fag-end of trade and gained 0.91 per cent to close at Rs 354.75 on BSE.
Amid a spike in COVID cases, the Delhi Disaster Management Authority, on Tuesday, ordered the closure of schools, colleges, cinemas and gyms with immediate effect and put various restrictions on the functioning of shops and public transport as a yellow alert was sounded under the Graded Response Action Plan (GRAP).
"Delhi government's decision to shut down theatres and multiplexes will certainly hit the revenues of these businesses. The greater concern is whether other governments too will follow suit as the Omicron variant spreads," V K Vijaykumar, Chief Investment Strategist at Geojit Financial Services, said.
"There is a view gaining ground that the Omicron variant is less virulent, though fast-spreading, and therefore, might be indicating the imminent end of the pandemic. If this turns out to be true, the closure of theatres and multiplexes may be short-lived and stock prices will bounce back," he added.