News channel stock up on government ok for FII inflows

MUMBAI: Media stocks showed varied movements on the stock market and rallied smartly after the government today announced FIIs, non-resident Indians and overseas corporate bodies will be allowed to invest in the print medium’s news category and TV news channels.

One of the major gainers at the stock market was Deccan Chronicle that opened at Rs 185 on the Bombay Stock Exchange (BSE) to close at a high of Rs 212, gaining in the process Rs. 26.55.

Yes Bank country head, entertainment and media, Sunil Kheterpal said, "The approval, which has been pending for a while, is a welcome step for both the print and electronic media (stocks)."

Another market analyst stated, "The news about allowing FIIs, etc was doing the rounds and the market today reacted optimistically to the formal announcement."

Most of media stocks, except Zee Telefilms, registered varied degree of gains on the stock market today, buoyed by the government announcement after a Cabinet meeting.

TV Today Network, which opened at Rs 79.25, closed for the day at Rs 88. NDTV opened at Rs 196.45 and closed the day at Rs 214. TV 18 opened at Rs 267.20 and closed for the day at Rs 278. Zee closed at Rs 142.30 after opening the day at Rs 146.

Dwelling on the media stock rally a market analyst was of the opinion that NDTV, TV 18 and Deccan Chronical would be “on the radar of FIIs.”

Mid-Day Multimedia, which had kicked up a political controversy when it went public few years back because of the possibility of FIIs investing in the stock and, thus, in an Indian newspaper, today opened at Rs 63 to close the day at Rs 70.                     

While pointing out that FIIs would be “interested in media stocks, though being selective,” another stock market analyst opined Mid-day Multimedia is still grappling with competition and might be “one of the less likely contenders” (for FII investments).

In this connection, market analysts feel that a possibility of the Indian Express group and Hindustan Times, which are also looking at going public, will bring good growth in the print media sector.

The Union Cabinet today okayed investments in print’s news category by FIIs, OCBs and NRIs within the overall foreign investment cap of 26 for this sector.

I&B minister Jaipal Reddy while making an announcement on allowing printing of facsimile editions of foreign newspapers in India ruled out any threat to the Indian newspapers.

"There would be no threat to the invasion of news content of Indian newspapers because while facsimile editions of foreign papers have been allowed, these papers must be a standard publication in their own country as well, and their Indian editions will not be permitted," the minister explained.

Dwelling on the electronic media, Reddy reiterated that the ceiling on foreign investment of 26 per cent cap will hold, but, as hinted earlier, FIIs, OCB, NRIs, have been permitted to invest in news channels as well.

Market analysts believe that the upturn in the media sector augurs well for investors. "There is scope to substantially increase FII investment in the broadcasting companies,” a fund manager in a leading broking house said.

Latest Reads
Hunt for Zee Business head continues

MUMBAI: Zee Business, an arm of Zee Media Corporation, has seen several transitions in its management this year. The channel was initially headed by Amish Devgan, who decided to move away after serving for 14 years. It was then led by Zee Media Corporation’s then CEO for content Samir Ahluwalia,who...

Television TV Channels People
'King' content will take over monopolistic media entities, says Arnab Goswami

NEW DELHI: The future of news lies in breaking away from the interdependence of politicians and the media on each other.

Television TV Channels News Broadcasting
Animated 'Ramayana' a global Diwali gift on web, mobile

NEW DELHI: Thirty episodes of the animated series Ramayana will be available around the world on the nexGTv web and mobile platforms during Diwali.

Television TV Shows Animation
Sports Minister lauds b'casters, other stakeholders in promoting sports

NEW DELHI: India’s Sports Minister Vijay Goel said on Wednesday that digital media broadcasting will play a critical role in bringing about change in sports broadcasting in India but broadcasters must also focus on how sports as a product is delivered to audiences in rural areas so as to popularise...

Television TV Channels Sports
Know your karma on IBN7 with 'Karm Path'

In an attempt to give its viewers a refreshing start of the day, IBN7 is launching a new show titled Karm Path. Starting 27 October, the show will predict what the day holds. The show is a differentiator in its own genre as it connotes the supremacy of deeds over destiny.

Television TV Channels News Broadcasting
Big Ganga available on Tata Sky now

Big Ganga has strengthened its distribution with DTH service provider Tata Sky.

Television TV Channels Regional
TV is story-teller's new novel; audience is Bharat, not India: Star's Banerjee

MUMBAI: Since five to six years, television has become the talking point. Th series such as 'Breaking Bad' to Transparent to Narcos to 'Game of Thrones' to 24, and now POW (Prisoners of Wars) has changed the experience of television viewing.

Television TV Channels GECs
Star World to air 1-5 of 'Homeland'

Star World and Star World HD is all geared up to air the pulse-pounding action series 'Homeland.' The show tackles geopolitical moral conundrums of our current world. It has recently unveiled the teaser for the upcoming season 6 shows how Carrie Mathison will circumvent around another international...

Television TV Channels English Entertainment
Share all World Cup, T-20 feeds with Prasar Bharati, rights holder told

The telecast of all official one-day and Twenty-20 matches played by the Indian Men’s Cricket Team will henceforth have to be shared by the rights holder with the public broadcaster Prasar Bharati under the Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Act 2007.

Television TV Channels Terrestrial

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories