Nifty Media Leads Sector Gains with 3% Surge; PVR, TV Today, and Network18 Drive Rally

On October 8, media stocks were active in trading, defying broader market volatility, with PVR Inox, TV Today, and Network18 recording significant gains. This uptick propelled the Nifty Media index up over 3 percent, positioning it as the top-performing sectoral index for the day.

By 1 PM, shares of PVR Inox, TV Today, and Network18 had risen by 2-3 percent, while the Nifty Media index was up 2.4 percent.

"For the last couple of sessions, the media space was under pressure, but after taking support on the 200-day weekly moving average, prices have strongly bounced back," said Rajesh Bhosale, Equity Technical Analyst at Angel Broking.

Bhosale also identifies Zee Entertainment Enterprises as an appealing investment, noting that it is currently positioned near its long-term support level.

For instance, PVR Inox's stock performance has been closely linked to box office collections and its upcoming film lineup. Following a lackluster first half of CY24, box office earnings have started to rise, with expectations of further growth in Q3 FY25, fueling optimism for a recovery for the multiplex operator.

Nuvama Institutional Equities expects advertising revenues to gradually improve in Q3 FY25, bolstered by the festive and wedding seasons when consumer companies generally increase their ad spending. This rise in ad revenues is viewed as a positive sign for broadcasting firms such as Network18, Zee Entertainment, and Sun TV Network.

"Additionally, the La Niña effect is expected to boost rural consumption, benefiting advertisers. For multiplexes, we project blockbuster results in Q3 FY25, fueled by a strong lineup of films across various genres during the festive season," Nuvama added.

Additionally, the recent downturn in the sector has provided investors the opportunity to acquire shares at significantly lower prices and attractive valuations, leading to increased bottom-fishing in media stocks.