Indian stocks that gain from cricket’s popularity in the South Asian nation extended their rally after the country’s win over Pakistan, with the announcement of the game’s inclusion in the 2028 Olympics delivering a double boost to consumer stocks.
(Bloomberg) — Indian stocks that gain from cricket’s popularity in the South Asian nation extended their rally after the country’s win over Pakistan, with the announcement of the game’s inclusion in the 2028 Olympics delivering a double boost to consumer stocks.
Shares tied to food delivery, alcoholic beverages and quick-service restaurants, including Zomato Ltd., United Spirits Ltd. and Barbeque-Nation Hospitality Ltd., gained on Monday. A Bloomberg index of companies that are set to benefit from the ongoing Cricket World Cup tournament has risen more than 7% over the past month, versus the 2.3% drop in the broader NSE Nifty 50 Index.
“People are able to gather together and celebrate cricket after a long time now, and this is providing a fillip to consumption stocks including Zomato, United Spirits, Varun Beverages etc,” said Nirav Karkera, head of research at Fisdom Wealth, Mumbai-based investment advisory firm.
Cricket was on Monday formally included in the 2028 Los Angeles games after an absence of over a century, delivering a fillip to the game’s global ambitions a day after Prime Minister Narendra Modi said India will bid to host the 2036 Olympic Games.
The Olympics provide a platform for cricket that’s larger than the World Cup tournament that began in India this month after a gap of over a decade.
“Cricket is one of the most loved sports globally, and the second most watched. For 1.4 billion Indians, cricket is not just a sport, it’s a religion!” said Nita Ambani, a member of International Olympic Committee and chairperson of Reliance Foundation.
The world’s fifth-biggest economy, which aspires to become a developed country by 2047, is keen to register its presence on the global stage. Hosting an event like the Olympics would involve billions of dollars in public spending, while economic benefits include a boost in spending by foreign visitors, increased construction and demand for goods and services.
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