Mumbai: While hospitality, IT and travel sector stocks getting hammered on fears of loss of business due to the ongoing Iraq war, Indian pharma, cement and engineering stocks are in the limelight on the hopes that huge business opportunities in Iraq and other Arab countries will emerge in the postwar scenario.

Scrips of major hotel, travel and tourism companies like East India Hotels (EIH), Indian Hotels and Thomas Cook have plummeted since the beginning of the war and touched respective lows on Friday. Registering a 5-per cent dip, EIH touched a low of Rs 157.30 while the scrips of ITC Hotels and Hotel Leela have gone down by 7.6 per cent and 12 per cent, respectively.

According to market analysts, in the postwar scenario, companies like Larsen & Toubro, Bharat Heavy Electricals and Hindalco would play a big role in the Iraq rebuilding exercise and pharma companies such as Ranbaxy, Dr Reddy’s and Sun Pharma will have an edge in providing cheaper generic drugs to the Iraqis.

Pharma scrips like Ranbaxy and Dr Reddy’s have gained since the beginning of the war. Ranbaxy gained Rs 46 to close at Rs 629 on Friday as against Rs 583 on 19 March, while Dr Reddy’s has gained Rs 30 and closed at Rs 899. Engineering scrip BHEL too has also gained around Rs 16 since the beginning of the war and closed at Rs 221.5 on Friday.

Shaina Mukadam, a pharma analyst with Motilal Oswal, says: “Pharma companies with full-fledged US operations such as Ranbaxy, Dr Reddy’s and Sun Pharma would gain out of this war. It is expected that in the postwar scenario there will be a huge demand for anti-infective drugs, in which Ranbaxy has a wide portfolio.”

Vijay Bhambwani, CEO, bsplindia.com, too, is optimistic of few sectors doing well: “Cement major L&T already has a presence in the Gulf region, including Iraq, and would be better placed to grab reconstruction projects after the completion of the war.”

Currently, around 50 Indian companies operate in Iraq. These include Oil and Natural Gas Corporation, construction firm Gammon India, Tata Engineering, L&T and Bharat Heavy Electricals.

An equity dealer with Geojit Securities, however, says: “It is too early to say whether Indian companies will be able to grab the opportunities. The Indian government has not supported the US stand of unilateral war on Iraq and thus it will be difficult for Indian companies to get business orders.”