Stock Market: Probable Winners And Losers From The Cricket World Cup 2023

Date : 25/10/2023
Read: 4 mins

World Cup 2023 is likely to benefit food delivery, hotel and travel stocks, but do you know which stocks stand to lose from it?

World Cup 2023 Can Spark Up These Indian Stocks

Official broadcaster DisneyStar expects to generate an advertising revenue of Rs 4,000 crore from its ICC Cricket World Cup 2023 coverage. Many Indian brands like HUL, Mahindra and Mahindra, PhonePe, IndusInd Bank, etc., have lined up for spots in these coverages. Being the ground zero of the cricket carnival after 12 years, India Inc. can benefit from the event too. However, it is expected to be a mixed bag of impact as far as the cricket World Cup and Indian businesses are concerned.

With 48 matches to lap up, the Cricket World Cup has 45 days to play around with the Indian market
Finance firm Jefferies expects World Cup 2023 to have an overall positive impact on businesses
An estimated 800 million viewers are expected to watch this sporting spectacle

Positive World Cup Impact on Businesses

Here is a look at sectors that can expect a positive impact –

Food delivery – With friends and family cheering on in the living rooms, food delivery is expected to increase. Investors may keep an eye on Zomato whose stock price is near its 52-week high.
Hotels – If you are not watching it on TV, you are probably travelling to the venue. Hotel bookings are likely to soar, which is why stocks like Indian Hotels and Lemon Tree may enjoy the economic benefits of the World Cup.
Travel – To reach the venue you need to travel. This is where the financial prospects of stocks like IRCTC and Indigo come into the picture.
Gaming/media – Gaming stock Nazara and media stocks like ZEEL and HT Media may get more traffic than usual.

Also Read: Top 5 Online Cricket Gaming Apps Where You Can Make Money Legally

Beverages – Many fans are likely to raise a toast to cover drives, with stocks like UB, United Spirits, Radico Khaitan and Sula likely to have positive impacts from the cricket influence.

The Fall Guys

Not much benefit can be expected from the following segments:

Cinema – Viewers may be too engrossed in cricket to catch a movie. So, stocks like PVR-Inox would have little joy.
Theme parks – The same World Cup effect could apply to theme park stocks like Wonderla Holidays and Imagicaa.
Retail – Brands like Shoppers Stop, Page Industries, Reliance Retail, and Aditya Birla Retail are among those who might be left stranded in the cricketing crossfire.

Conclusion

Looking at the customer behaviour during similar events, it can be estimated that businesses like cinema halls, theme parks and traditional retail will wear a desolate look. However, food delivery, e-commerce platforms, hotels, and food and beverages are among businesses that are likely to receive a boost from the cricket influence. It must be noted that the cricket spectacle coincides with the festive season of 2023, which adds to the influence in more ways than one.

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Also Read: ICC Cricket World Cup 2023: Which Stocks Can Benefit The Most?

Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.