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All-round buying lifts the spirit in M&E space
MUMBAI: It’s been a week well spent on the bourses for most media and entertainment (M&E) stocks. Taking the lead from broader markets cheered by increased participation by overseas investors and indices scaling new peaks, leading M&E stocks tune in for a successful run for the second consecutive week.
Stocks such as Sun TV, Dish TV, HT Media, Raj Television, Reliance Broadcast Network and Reliance MediaWorks reported back-to-back weekly gains in their share price while Zee Entertainment Enterprises (ZEEL) and NDTV returned to the positive zone helped by steady build-up in buying interest.
While DEN Networks logged maximum gains for the week ended 7 March, Entertainment Network (India), which operates private FM radio stations under the brand Radio Mirchi, clocked highest gains in absolute terms.
Info Edge (India) and PVR were sitting at the bottom of the pyramid by recording biggest losses for the week.
HT Media climbs higher
The entry of ‘big bull’ Rakesh Jhujhunwala into HT Media last week ensured the counter adding further gains in its share price.
After adding over 9 per cent last week, HT Media’s counter added 6.3 per cent to settle the week at Rs 82.35 per share. In the process, it scaled a new monthly and weekly high of Rs 85.20 before being let off the hooks by traders on profit taking.
However, the volumes tapered this time around. It clocked volumes of 2.23 lakh (0.22 million) equity shares, down from the two-week average of 7.59 lakh (0.76 million) shares on the BSE.
Last week, HT Media topped the gainers’ chart after Rakesh Jhujhunwala’s RARE Enterprises bought 15 lakh (1.5 million) equity shares in the company.
In the last nine trading sessions, the counter added close to 16 per cent in its share price.
However, the fate of other print companies continued to dilly-dally with changing investor sentiment. The announcement of general election in the country provided some support for print publications. But nevertheless they were seen struggling for lack of buying support.
DB Corp, Hindustan Media Ventures (HMVL) and Jagran Prakash ended the week marginally lower.
HMVL, the HT Media-owned group company, had to contend with losses yet again. It settled the week 0.2 per cent lower at Rs 123.70.
After suffering extensively from bear hammering in the past few weeks, the multi-system operators (MSOs) managed to turn the tide over.
Delhi-based DEN Networks came out stronger. It has not only reversed its week of losses but ended the week 9.6 per cent stronger at Rs 145.90 per share on the BSE. The company was the best performing stock among the M&E segment in terms of percentage rise in share price.
Mumbai-based Hathway Cable & Datacom also witnessed a similar trend. It settled the week 2.3 per cent higher at Rs 249.55 per share on the BSE, reversing the previous three weeks of losses.
Siti Cable, the Essel Group’s cable TV distribution arm, ended almost unchanged at Rs 19.05 per share.
Direct-to-home (DTH) operator Dish TV ended the week 2.5 per cent higher at Rs 50.60 per share.
News channels flashing gains
For news broadcasters, the week gone by was an eventful one. Most broadcasters tuned in gains in their share price except for TV Today which operates Hindi news channel Aaj Tak.
New Delhi Television (NDTV) led the trend reversal story. The company witnessed the maximum rise in its share price. It was so much so that its entire previous week’s losses were evaporated.
NDTV settled the week 7.2 per cent higher at Rs 73.20 per share. In the previous week, the counter had settled 3.4 per cent lower at Rs 68.30.
TV18 Broadcast, the operator of CNBC, CNBC Awaaz, CNN-IBN and IBN-Lokmat, rounded off the week 3.4 per cent stronger at Rs 22.95 per share, its third consecutive week of gain.
Zee Media, the news channel arm of the Essel Group, added 0.6 per cent to close the week at Rs 13.58 per share.
BAG Films, the operator of Hindi news channel News 24, gained 2.1 per cent for the week before settling at Rs 2.42 per share.
Meanwhile, the TV Today counter continued to languish in the negative zone. The counter took a cut of 3.6 per cent for the week before settling at Rs 113.15 per share. In the last nine trading sessions, the counter had lost over 7 per cent.
Entertainment broadcasters shine on good programming
Sun TV continued to benefit from increased buying activity. After clocking over 5 per cent gain in the previous week, the counter added similar gain in its share price during the week. The counter ended Friday’s session at Rs 389.75 per share, up 5.10 for the week.
ZEEL benefited from its Hindi GEC Zee TV which climbed to the second spot after dislodging Sony Entertainment Television (SET). ZEEL ended the week 3.5 per cent stronger at Rs 277.80 per share.
Raj Television witnessed yet another week of gains to its credit. The counter, which has become investors’ darling lately, saw an addition of 2.4 per cent before settling the week at Rs 576.75 per share.
Other M&E counters stay on course
Helped by selective buying, other M&E companies stayed on course. Trading activity on Reliance Broadcast Networks (RBNL) and Reliance MediaWorks (RMWL) remained upbeat helped by delisting offer from promoters.
Inox Leisure closed the week on a positive note, while PVR ended on the losing side. Companies such as Balaji Telefilms, Info Edge and Prime Focus continued to languish in the negative zone.
By announcing a delisting offer price of Rs 48.65 per share, promoters of RMWL spurred trading interest on the counter. Consequently, the counter added 4.5 per cent to its share price before closing the week at Rs 56.15 per share, which is 16 per cent higher to its delisting offer price. Owing to the delisting offer price, the promoters would spend over Rs 251 crore (Rs 2.51 billion) to buy out public shareholding that stands at 26.70 per cent of the company’s total paid-up capital.
RBNL, meanwhile, recorded marginal gains in its share price. The counter settled the week at Rs 67.75 per share on the BSE, which is close to the delisting price of Rs 70 offered by promoters.
ENIL (Radio Mirchi) registered its third consecutive week of gains on the street. It collected gains of 5.4 per cent to settle at Rs 397.50. It logged highest gains in absolute terms and emerged as the best performing counter among M&E stocks.
Leading content provider Balaji Telefilms once again ended the week in the negative zone. It settled the week 0.5 per cent lower at Rs 45.45 per share. Zee TV deciding to engage Balaji Telefilms to produce shows for the prime band (to take on rival channels) played a crucial role in marking its recovery on the bourses.
Prime Focus entered meagre losses before ending the week at Rs 27.90 per share. PVR lost over 3 per cent or Rs 16.30 to close the week at Rs 514.50.
Info Edge recorded maximum losses among the M&E counters. Profit taking at the higher levels continued to damage its tend line. The second consecutive week of losses saw the counter settling 4.1 per cent or Rs 26.15 lower at Rs 605.75. In recent times, the counter had charted higher after announcing a slew of web-property buys.
At the broader front, both BSE Sensex and NSE Nifty soared to a record high level driven by strong buying from overseas institutional investors. Both indices added close to 4 per cent for the week as investors lapped up equities in the cash markets shrugging asides fears of US tapering as well as slowdown in Chinese economy.
The Nifty rose as much as 2.1 per cent to a record high while the Sensex hit its record for a second consecutive session, as foreign investors bet big in a country that was just a few months ago gripped by market turmoil.
The broader Nifty’s all-time high of 6,537.80 points surpassed its previous high of 6,415.25 hit on December 9, although the Sensex got there first, hitting a record high on Thursday and again on Friday.
The NSE ended up 2 per cent or 125.50 points, posting its biggest daily percentage gain since November 25. The index rose nearly 4 per cent for the week.
The Sensex rose 1.9 per cent or 405.92 points after setting an earlier record high at 21,960.89 points. It rose 3.8 per cent for the week.
For the year, foreign investors have bought a net $850 million in shares, after buying $20 billion worth last year.