The Hindu Business Line : Media, entertainment stocks hog limelight — Rakesh Jhunjhunwala picks 2.9 % in TV Today

MEDIA and entertainment stocks appear to be topping the list of investor buying as the buoyant stock market seems to take note of fundamentally strong sectors.

This trend was seen today when most of the media companies' stocks gained at the bourses. However, stocks that declined today in this segment were Adlabs and Shringar Cinema, which had gained sharply last week.

Sometime these stocks caught the fancy of investors primarily on attractive valuations. The Government's decision to allow foreign institutional investors to invest in print media is seen as a sign of further liberalisation.

Good valuation in media stocks was seen from the purchase of 16.90 lakh shares (2.9 per cent stake) of TV Today Network by long-term investor Mr Rakesh Jhunjhunwala. Following his buying, the stock price of the company was locked in the 20-per cent upper circuit to close at Rs 101.15 on the BSE

The other major gainers included UTV Software (up 12.14 per cent at Rs 169), Sri Adhikari Brothers (6.87 per cent at Rs 84.05) and Tips Industries (5.86 per cent at Rs 47.85). Stocks such as TV18, NDTV and Zee Telefilms also appreciated.

"The Government's decision to allow FIIs to invest in print media is a good augury of what can be expected. It is only a matter of time before the Government allows them to invest in news channels," said Mr Nitin Khandkar, Vice-President - Research, Keynote Capitals.

Equity analysts tracking the sector pointed out that Reliance Capital's acquisition of 51 per cent stake in Adlabs Films Ltd has changed the scenario for media and entertainment stocks. The possibility of big deals going through in listed media and entertainment companies cannot be ruled out.

This sector is also seen to be on an upward movement in the backdrop of increasing consumer spend for entertainment not only in major metros but in smaller cities and towns also. The sector is evolving and in the years to come would be a major revenue earner.

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