India elections boost media stocks

Chris Forrester

The Indian election results were counted last Sunday, and a new government installed. The end result for local media stocks was an immediate slew of gains as investors assumed that political stability would mean fresh opportunities for broadcasters.

Indeed, such were the gains on Monday that Bombay's stock exchange had to suspend trading within a minute of the exchange opening, the upward swell was too great. This pattern continued during the day.

There were plenty of near-20% gains during the day, including Sahara One (20%), Sun TV (19%), Adlabs Films (16%), TV18 (18.35%), NDTV (13.8%), Zee Ent Ltd (11.8%), UTV (11.3%) and (Zee-backed) Dish TV (9.7%).