Goldman cuts Zee Entertainment to 'neutral'; shares fall

Shares in Zee Entertainment Enterprises Ltd fall as much as 5 percent after Goldman Sachs downgraded the television broadcaster to "neutral" from "buy", saying the stock appears "fairly valued" given macro headwinds that could hurt advertisement spending.

Goldman also says losses from sports brodcasts could widen in the fiscal year ending March given more India cricket series are scheduled for 2013/14.

However, the investment bank sees room for a "dividend surprise" given the company's net cash position and says Zee will continue to benefit from subscriptions tied to digitisation.

Zee shares  were down 3.8 % as of 12:49 p.m.