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Our Bureau

Mumbai , June 16

THE Union Cabinet's decision to allow FIIs to invest in print media set the stocks of companies in newspapers business on fire.

Stocks of TV news channel companies also went up.

The announcement, which came during the trading hours, saw stocks from the sector gaining more than 10 per cent immediately.Stocks to gain in today's trading include: Mid-Day Multimedia (up 10.7 per cent at Rs 69.85 on the BSE), Sandesh (up 9.81 per cent at Rs 138.80), Deccan Chronicle (up 14.35 per cent at Rs 211.35) and CyberMedia (up 10.93 per cent at Rs 157.60).

Among TV news channels stocks, NDTV gained 9.21 per cent at Rs 214.55, TV Today 12.05 per cent at Rs 88.80 and TV 18 4.1 per cent at Rs 278.15.

Analysts said the decision is positive as this would help in re-rating of such companies.

"We believe the decision to cap FDI/FII investment in print media at 26 per cent will significantly alter the media landscape with investors having the option to invest in quality media players as indeed for media assets to attract foreign capital," said Mr Nikhil Vora, Vice-President (Research), SSKI Securities.

He said it might be early to jump the gun. However, easing of capital flow could mean a significant re-rating of the businesses, which would aid in diversification into different genres.

Officials at foreign broking houses that cater to FIIs said this segment of media has been keenly watched by foreign investors and permission to allow them to invest in newspaper companies would help in re-rating of their stocks.

"Even though there are very few companies listed in this group, FIIs would surely invest in such companies as this segment is under-valued compared to overall media stocks," said a dealer with a foreign broking firm.

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