As the 2023 Cricket World Cup commences in India, investors are closely examining the market to identify potential stock winners who could benefit from the nation’s most beloved sport.
Jefferies, a leading brokerage firm, has identified several consumer-oriented businesses that could witness an increase in sales due to the World Cup coinciding with the peak festive season. The firm holds a positive outlook on various sectors, including hotels, airlines, media companies, and online food delivery services, among others.
Cricket commands more than 85% of all sports-related sponsorship and media spending in India. The brokerage firm points out that the previous edition of the World Cup in 2019 attracted a staggering 750 million unique viewers and accumulated a total viewing time of 14 billion hours.
Jefferies’ analysts, Vivek Maheshwari, Kunal Shah, and Jithin John, shared their perspective in a client note, stating, “As cricket is India’s most popular sport with a substantial viewer base, consumption and media activity are expected to be at their peak over the next 45 days, as already evidenced by increased flight and hotel rates. While Indian fans are hopeful for a victory on the field, investors and brands are also anticipating a robust December quarter, coinciding with the festive season. This presents a unique home advantage.”
The World Cup also aligns with upcoming festivals in the coming months, including Navratri, Durga Puja, Dussehra, Karwa Chauth, Dhanteras, and Diwali. These occasions are traditionally considered auspicious for various purchases, further contributing to the potential surge in consumer spending.
Moreover, Jefferies notes that more than half of India’s matches, and nearly all matches involving top-ranked teams, are scheduled on weekends, which is expected to boost viewership and have a positive economic impact.
However, the brokerage also points out that certain sectors, such as movie theaters, theme parks, and traditional offline retailers, may face challenges during this period.