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Dish TV climbs but weak week for MSOs
MUMBAI: A mix of economic and political elements played out effectively during the week ended 6 December to guide the domestic markets higher. Strong buying triggered by steady inflow of foreign capital into equities, higher than anticipated second quarter GDP growth and stronger rupee played a constructive role in the market’s run up to a near five-week high.
India’s GDP data released last Friday after market hours grew 4.8% in the quarter ended September 2013. Agriculture and factory output showed sizeable improvement.
Exit polls predicting BJP victory in the just concluded assembly elections have cheered market participants. Assembly elections were held in Delhi, Chhattisgarh, Madhya Pradesh and Rajasthan in November-December.
Sensex surged near five-week high, helped by good buying in shares of banking, capital goods, power, metal and PSU sectors.
Steady buying interest helped BSE Sensex and CNX Nifty to extend gains for the second consecutive week
Sensex attempted to breach the 21,000 mark before ending the week at 20,996.53, showing a gain of 0.98%. The NSE 50-share Nifty firmed up 1.36 per cent, to end at 6,259.90.
Media & Entertainment sector takes the lead
Interestingly, even as the benchmark index marched higher, CNX Media Index outperformed the broader indices comprehensively. CNX Media Index ended 1.9% higher this week compared to Sensex’s 1% rise and Nifty’s 1.36% run-up.
Within the Media & entertainment sector, the companies belonging to news broadcasting activity and theatrical/exhibitors of films have managed to perform well.
Ongoing assembly elections have come to the rescue of companies operating general news channels.
Film exhibitors rule the street
Media and entertainment companies engaged in theatrical/exhibitor business had a better showing on the Dalal street. The biggest gainer was INOX Leisure, which operates mutli-screen theaters (multiplex) across the country.
INOX Leisure counter sizzled during the week due to the strong market participation. It added 24.6% to its share price before ending the week at Rs 114.00.
The company recently announced commencement of commercial operations of its Raipur property. This new multiplex cinema has 4 screens and 1025 seats. INOX is now present in 40 cities with 74 multiplexes, 288 screens and 78,913 seats.
Exhausted from the previous week’s run up, PVR counter witnessed a cooling of sessions. After racing to its new 52-week high at Rs 650.70 per share on Tuesday, the counter retreated on profit taking reasons. A constant sell order at higher levels coupled with increased volume pushed the counter lower. It settled for the week at Rs 620.70 per share, down 0.9%.
News channels grab the headline
Assembly election exit polls have not only revived market interest but also led investors flip back to news channels.
TV18 Broadcast, which runs channels such as CNN IBN and IBN 7, has been the top gainer in the week. Its share price advanced 4.6% for the week to end at Rs 23.75 per share.
TV Today Network, which runs the leading Hindi news channel Aaj Tak, also gained during the week. The counter witnessed increase in trading volumes, while its share price added 1.9% to conclude the week at Rs 118.80.
Zee Media’s share price added 2.7% to round up the week at Rs 14.04.
NDTV was the laggard amongst the TV news broadcasters, having seen its equity price sliding 4.3% to Rs 78.75 for the week under review.
Entertainment broadcasters gain
Entertainment broadcasters Zee Entertainment Enterprises Limited (ZEEL) and Sun TV have had a good run during the week.
ZEEL added 5% to its share price before ending the week at Rs 272.30.
Sun TV clocked 0.7% increase in share price to end the week at Rs 372.65. Interestingly, the counter witnessed a flurry of block deals during the week which saw its trading volume zoom.
Raj Television, on the other hand, settled into negative zone as profit takers flocked the counter. It settled the week 0.6% lower at Rs 474.45 per share.
Amongst content providers for broadcasters, Balaji Telefilms took a lead. The company made strong a comeback by recording a sharp gain in its share price. It added 10.9% for the week before settling at Rs 43.05 per share.
Reliance Mediaworks also added 10% to its share price before ending the week at Rs 51.05.
Weak week for the MSOs
A nearing of deadline to feel Customer Acquisition Forms (CAF) and unresolved dispute between the multi-system operators (MSOs) and local cable operators (LCOs) has severely impacted the showing of cable TV companies on the bourses. DEN Networks, Hathway Cable and Datacom and Siti Cable took it on their chin as investors deserted these counters.
Share price of DEN Networks slid to a new 52-week low of Rs 110.45 on 5 December 2013 amid high volumes. Since then the counter recovered but not before shedding 10.6% for the week at Rs 129.05.
Hathway Cable and Datacom had a rough ride as well. The counter lost 4.6% for the week to settle at Rs 247.05 per share.
Siti Cable ended 2.3% lower at Rs 16.85.
Dish TV climbs on block deals
While it was a bad weak for MSOs, Dish TV celebrated. A couple of block deals recorded during the week led the counter to settle 8.9% higher at Rs 60.8 per share.
Analysts expect Dish TV to up its carriage revenue. Providing for more transponder capacity is also seen in positive light. The successful launch of SES-8 will help the direct-to-home (DTH) operator to add transponders.
Print media companies such as HT Media and Jagran Prakashan along with Info Edge, ENIL, Eros International Media and Reliance Broadcast Network ended in negative territory.