Media stocks soar on FDI hike buzz

 Zee Entertainment, which rose 6.8 per cent intra-day, closed 3.76 per cent higher, while IBN 18 was up by 5.63 per cent and Balaji Telefilms 6.60 per cent.

 For 2007-08, the media and entertainment sector saw an inflow of about Rs 900 crore as foreign investments.  The ministry of information and broadcasting has prepared a Cabinet note on a 74 per cent FDI cap for key media platforms such as IPTV, Mobile TV, DTH, and Headend in the Sky (HITS) against the existing 49 per cent FDI cap for the cable sector.  "The final decision in the matter will be taken by the Cabinet shortly," an industry source familiar with the development said.  Commenting on the sharp upward movement of NDTV and TV Today stocks on Wednesday, a senior market analyst said, "There has been a reduction in the floating stocks of NDTV and TV Today that may have pushed up the stock prices sharply. As for the other media stocks, its not an unusual increase."  InvestShoppee Chief Executive Ashish Kapoor said, "Amidst rising inflation and oil prices, media stocks continue to gain market confidence broadly because of the aggressive growth plans of several media companies and faster cable and DTH penetration. Be it movie production, channel launches or creation of multiplexes, the media companies are showing faster growth in comparison to some other sectors that are directly impacted by rising oil prices and inflation."  According to Gopal Agarwal, senior fund manager, Mirae Asset Global, "During the IPL, majority of the media stocks corrected sharply and now with higher crude oil prices and inflation affecting market sentiments, investors are deploying funds in sectors that are looking attractive such as media and FMCG companies.