PVR, Inox Leisure shares hit hard by Maharashtra closing cinema halls

In recent developments, Maharashtra has seen a huge rise in COVID-19 cases accounting almost half the daily cases of the country. The government of Maharashtra announced on Sunday that it will impose tight restrictions and shut cinema halls, theatres and multiplexes across the state.  

As the stock market opened on Monday, it brought a bad news for cinema companies such as PVR and Inox Leisure as their stock price went down more than 8% on Bombay Stock Exchange. Looking at the stocks, PVR dropped around 8% to Rs 1,140 and Inox Leisure went down 6% to Rs 263.2 on the BSE.

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In a first, India crossed 1-lakh mark in daily COVID cases on Monday, the second country to reach six figures in daily data after United States. Maharashtra state alone recorded more than 57,000 cases, with its capital Mumbai recording more than 11,000 cases. 

The restrictions were brought in place after the rising number of cases in the state. Shopping malls and cinema halls will remain shut until further notice. Private offices except a few engaged in finance, insurance, bank and other essential services will have to work from home. The government offices will also see only 50% attendance as per the reports.

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Since last year, there have been many restrictions and lockdowns forcing people to stay at home because of the coronavirus pandemic. From cinema halls to schools, everything was shut to contain the virus, but in the unlock by the central government, things came back to normality and cinema halls opened nationwide from February 1 to full capacity.