Today GST council meet reduced GST rate for hotel tariffs – a big relief for Indian hospitality industry. Briefing reporters after the GST council meeting, Finance Minister Nirmala Sitharaman announced the new GST rates.. Here is the summary
Rooms with tariff Rs 7,500 and above will now be taxed at 18% compared to 28% before. Rooms with tariff between Rs 1001 and Rs 7,500 will be charged 12% instead of 18% and no GST on rooms with tariffs upto Rs 1,000.
So major uptrend possible in hotel industry stocks on next trading session ie on Monday, 23rd Sep 2019. Here is the summary of hospitality industry stocks.
Overall most of the hotel stocks were in a bearish mode for past few months. So most of them are still under 200 dma and on weekly chart too very bearish.
But few of them were showing some positive movements in past few weeks like ITDC, Orienthot, Tajgvk, Eihhotels, Hoteleela, Wonderla, Advanihotr etc – all above 60 RSI. And stocks like Eihhotel, Ahlwest, Mhril, Rohltd, Byke, Kamathotel, Cchhl and Ahleast are above RSI 50. So more move possible in these stocks as they are technically strong compared to their peers.
But on yearly or 52 weeks basis stocks like Advanihotr, Eihotel, Orienthot, Ahlwest, Indhotel, Tajgvk, Mhril and Wonderla performed better compared to others. So watch out these stocks too because more chances of these stocks bouncing back when a positive mood comes to the Industry.