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Media stocks get a lift from Q2 results
MUMBAI: The week gone by was packed with several events. To begin with, the domestic bellwether indices namely Sensex and Nifty almost reached a new high only to retreat lower. Foreign institutional investors (FII) continued to be net buyers yet again. Rupee notched up another week of gains against the US dollar on a sign of further tightening from the Reserve Bank of India (RBI). All in all, the markets seem on its course to consolidation.
For the media & entertainment counter, the showing was slightly different. Well, the underlying sentiment remained strong as various scrips were building on the expectation of improvement in their quarterly performance.
CNX Media Index added 3% for the week before settling at 1744.70 points. Persistence of strong undertone in the segment can be well explained from the positive breadth within the constituents of CNX Media index. Of the 13 media companies covered under this index, eight have ended higher while 5 counters recorded drop in their prices. One counter remained unchanged.
Further, the daily average volume and value have increased considerably in the last five sessions. A bit tapering off on the weekend session was on expected ground, given the profit-taking by traders. Yet, the average volume of 8.89 million shares this week looks far stronger compared to previous week’s seven million shares.
The Zee Entertainment Enterprises Limited (ZEEL) counter was already buzzing with increased activity due to bonus issue of preferential shares. A strong fiscal second quarter performance, announced on 21 October, pumped up the share price. ZEEL touched a 52-week high on Wednesday when it climbed to Rs 273.40 a share on NSE. It ended the week 5% stronger at Rs 267.
ZEEL displayed its ability by clocking strong growth in the quarter to September 2013. While total income from operations grew 15.4% to Rs 1,101 crore ( Rs 11.01 billion), net profit surged 26% to Rs 236 crore ( Rs 2.36 billion) on the back of higher ad and subscription revenues.
DB Corp, the print major, also announced its Q2 results. Though the company reported growth in net profit that matched analyst expectations, its share price recorded nominal gains. It closed the weekend session at Rs 255.55, up 1.5% for the week.
Other counters that witnessed increased activity were Sun TV, TV18, Eros International and HT Media to name a few. Sun TV ( Rs 424.60, almost unchanged for the week) and TV18 ( Rs 22.95, up 4.08% for the week) counters are building ahead of quarterly results to be announced next week, while Eros International ( Rs 147.85, up 3.2% for the week) and HT Media ( Rs 87.85, down 4.8% for the week) counters reacted to quarterly performance.
Meanwhile, both the leading indices Sensex and Nifty are trading near crucial level. Nifty broke out of its trading range on the lower side towards the end of trade and Sensex maintained negative tone throughout the session before closing near day’s low as traders booked profits taking cues from weak global markets.
The Nifty ended at 6,144.90, down 19.45 points after touching a high of 6,174.75, while the Sensex closed the trade at 20,683.52 not far from its day’s low of 20631.57.
Meanwhile, the FII continued their buying binge on the domestic markets. They bought shares worth Rs 991.83 crore ( Rs 9.92 billion) while domestic institutional investors were net sellers worth Rs 735.4 crore ( Rs 7.35 billion) on Thursday as per the provisional data from the National Stock Exchange.