'Consumer' stocks likely to be stars of this World Cup

As the 2023 Cricket World Cup hosted by India kicks off, investors are combing through the market to spot stock winners who could be beneficiaries of the country's most popular sport.

Brokerage Jefferies said several consumer-facing businesses could see an uptick in sales as the World Cup coincides with the peak festive season. The firm is positive on hotels, airlines, media, and online food delivery businesses, among others.

Cricket attracts over 85% of all sports-related sponsorship and media spending in India. The brokerage said the last edition in 2019 saw 750 million unique viewers and 14 billion hours of total viewing time.

"As cricket is the most popular sport in India with a significant viewer base, consumption & media activity should be at its best over the next 45 days, already evident in flight/hotel rates," said Jefferies' analysts Vivek Maheshwari, Kunal Shah and Jithin John in a note to clients. "While Indians are hoping for a win, investors and brands are also expecting a strong December quarter, coinciding with the festive season - now that's the home advantage."

The World Cup also coincides with upcoming festivals over the next couple of months like Navratri, Durga Puja, Dussehra, Karwa Chauth, Dhanteras, and Diwali - considered auspicious periods for various purchases.

Moreover, more than half of India's matches and almost all with top-ranked teams are scheduled on weekends, said Jefferies.

There are some sectors like movie theatres, theme parks, and offline retailers that could be affected, said the brokerage.