Media stocks gain after govt raises advertisement rates

The ministry has announced a hike of 25% over and above the existing rate structure for advertisements in print media.

Jan 09, 2019 05:01 IST India Infoline News Service

media stocks
The Nifty Media index gained on Wednesday on heavy buying in DB Corp, Jagran Prakashan, Zee Media, and TV Today. The media index is up 0.10% at 2,498.

DB Corp was leading the index’s gain by trading up 7%.

Shares of advertisement stocks gained after the Ministry of Information & Broadcasting (I&B) took the decision to hike advertisement rates for print media by 25% over and above the existing rate structure. The decision will be valid for a period of three years.

However, shares of Sun TV, Zee, Dish TV, and Den were trading lower by ~1% each.                                     

Incidentally, the decision has been taken based on the recommendations of the 8th Rate Structure Committee constituted by the I&B Ministry. The committee took into account several factors, including the increase in the price of newsprint, processing charges, and other factors, which go into the computation of advertisement rates.

The last such revision had taken place in 2013 when an increase of 19% had been announced over and above the rates of 2010.

Meanwhile, the Sensex is up 229 points, or 0.64%, to trade at 36,209. The Nifty50 rose over 56 points, or 0.53%, to 10,859.

Stock view:
D B Corp Ltd is currently trading at Rs181.05 up by Rs11.35 or 6.69% from its previous closing of Rs169.70 on the BSE.

H T Media Ltd is currently trading at Rs45.25 up by Rs6 or 15.29% from its previous closing of Rs39.25 on the BSE.

Jagran Prakashan Ltd is currently trading at Rs121.55 up by Rs7.3 or 6.39% from its previous closing of Rs114.25 on the BSE.

Zee Media Corporation Ltd is currently trading at Rs24.45 up by Rs0.7 or 2.95% from its previous closing of Rs23.75 on the BSE.

T.V. Today Network Ltd is currently trading at Rs373 up by Rs7.45 or 2.04% from its previous closing of Rs365.55 on the BSE.

TV18 Broadcast Ltd is currently trading at Rs37.70 up by Rs0.05 or 0.13% from its previous closing of Rs37.65 on the BSE.

Zee Entertainment Enterprises Ltd is currently trading at Rs451.75 up by Rs0.2 or 0.04% from its previous closing of Rs451.55 on the BSE.

Sun TV Network Ltd is currently trading at Rs592.45 down by Rs7 or 1.17% from its previous closing of Rs599.45 on the BSE.

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