The media stocks were no exception to the ‘Black Monday’ crash on May 17, 2004. Like all counters at the bourses, media stocks also took severe battering, as their values crashed in the range of 5-20 per cent.
The 30-share BSE Sensitive Index (Sensex) closed with a massive loss of 564.71 points, or 11.14 per cent below the previous close of 4,505.16.
Actively traded media stocks such as Adlabs Films, Balaji Telefilms, ETC Networks and Padmalaya Telefilms saw a fall of between 12 to 20 per cent in value. Adlabs closed at Rs 65.30, down 18.83 per cent, Balaji Telefilms was down 16.27 per cent to close at Rs 63.35, ETC Networks closed at Rs 30.20 down 12.84 per cent, and Padmalaya Telefilms was down 20 per cent to close at Rs 43.
Surprisingly, Zee Telefilms was the only stock that bounced back from a low of Rs 102 to Rs 125 intra-trade in an otherwise southbound market. It finally settled at Rs 120.65, up 6.44 per cent over its previous close. Over 13.27 lakh Zee shares were traded on Monday.
Market is also abuzz with news that the shares of television broadcasting company New Delhi Television (NDTV) will debut on the stock exchanges on Wednesday, May 19, 2004.
NDTV came out with its maiden public issue in mid-April 2004. The public issue was priced at Rs 70, the higher end of Rs 63-70 price band. The face value of the share is Rs 4. NDTV’s public issue was a mix of fresh issue of equity shares and offer for sale. The issue was highly over-subscribed. NDTV proposes to use the issue proceeds for meeting its working capital requirements and repayment of loans.
It is understood from sources that the NDTV scrip was supposed to get listed on Tuesday but would now get listed on May 19.
Analysts, meantime, have differing views on how the NDTV stock would perform and whether is was indeed the right time to debut in the market. A majority of the market experts were seen to be sporting a bearish view on the markets after the Monday crash. For instance, Gaurav Dua, senior media analyst, Anagaram Stock Broking, in his note on Monday Morning has implied a bearish sentiment for the market in the near term and expects this to continue till a common minimum program is formulated by the Government coming into power.
However, according to some like Amol Dhariya, media analyst with Karvy Stock Broking, the prospects for media stocks look bright as the advertising revenues are seeing growth and the industry environment looks good. “The only worrying factor, going forward, would be the CAS issue. One will have to wait and watch what the new government’s take will be on this,” he said.
The other prominent losers on Monday were Creative Eye which closed at Rs 9.55 down 5.45 per cent, Mid-Day Multimedia down 5.29 per cent at Rs 24 and Pritish Nandy Communications (PNC) down 9.93 per cent to close at Rs 55.30.