The media stocks have been on dream run, gaining up to 32 per cent since December 27. Analysts point out that result expectations and speculative buying were the major factors behind the current bull-run.
According to industry sources, the rally this time was more pronounced in the frontline counters which recorded higher returns since late December, than their second rung counterparts. Counters like Balaji Telefilms, TV 18, Zee Telefilms and Moser Baer recorded highest gains.
Actor Jitendra-promoted Balaji Telefilms has been making waves on the bourses with the stock showing a smart gain of 31.65 per cent since December 27. The stock soared to touch a 52-week high of Rs 394.4 on January 8. Analysts point out that the company is expected to post better results, thanks to an increase in the number of serials that have been produced by the company. Besides, the company has reduced risks by spreading its presence to other television channel like Sony and Zee, in addition to Star TV.
The A-group media counter, TV 18, also gained about 32 per cent to close at Rs 102.8 on January 9. The scrip had recorded a 50-per cent spurt between December 28 and January 4. Media major Zee Telefilms also spurted 25 per cent during the period on news that the company was selling some stake to US media giant AOL-Time Warner.