The Cricket World Cup, officially referred to as the ICC Men’s Cricket World Cup, stands as the premier international championship for One Day International (ODI) cricket. Administered by the International Cricket Council (ICC) every four years, the competition encompasses preliminary qualification rounds leading up to a finals tournament. Widely recognized as one of the most-watched sporting events globally, it holds the distinction of being the “flagship event of the international cricket calendar,” according to the ICC.
The inaugural World Cup took place in England in June 1975, following the commencement of ODI cricket just four years earlier. It is noteworthy that a distinct Women’s Cricket World Cup had occurred two years before the initiation of the first men’s tournament. Moreover, an international tournament featuring multiple teams had been held as early as 1912 when a triangular Test match series unfolded between Australia, England, and South Africa. The initial three World Cups were hosted in England. Starting from the 1987 tournament onwards, hosting responsibilities have been shared among countries through an unofficial rotation system, involving fourteen ICC members who have hosted at least one match in the tournament.
The ICC World Cup 2023 kicked off on Thursday, and the cricket spectacle is scheduled to conclude with the final match on November 19, 2023. This translates to a duration of nearly one and a half months, covering almost half of Q3FY24. As per insights from stock market analysts, the ICC World Cup 2023 is anticipated to bring advantages to businesses in the tour and travel industry, as well as hotels, Quick Service Restaurants (QSRs), breweries, and related sectors. Companies within these domains are expected to witness increased business opportunities during this cricket World Cup tournament. Consequently, investment experts advise short-term investors to explore stocks from these sectors. Siddhartha Khemka, Head of Retail Research at Motilal Oswal, noted, “The World Cup 2023 commenced on Thursday in India, and it is expected to positively impact various sectors like Travel & Tourism, Hotels, Consumers, and QSRs, indicating that these sectors are likely to experience increased momentum.”
Regarding the influence of the ICC World Cup 2023 on the stock market, Avinash Gorakshkar, Head of Research at Profitmart Securities, remarked, “In major events like the cricket or soccer world cup, the host nation reaps the benefits of both local and international sports tourism. Fans typically plan their travel, including hotel bookings, flights, and transportation, based on their team’s schedule. Substantial spending also occurs in breweries and eateries. Hence, short-term investors should consider investing in high-quality stocks within sectors poised to gain from the event.”
For current stock recommendations, Avinash Gorakshkar suggested, “Within the hotel segment, potential investments include Indian Hotels and Lemon Tree. In the brewery sector, United Breweries, McDowell-N, and Radico Khaitan could be lucrative options for short-term investors.” Furthermore, he indicated that investors in the stock market looking into the Quick Service Restaurants (QSR) segment might find potential in shares of Devyani International and Barbeque-Nation Hospitality.