Media Sector Is Growing On UP Elections, Union Budget

The media sector has been seen zooming recently. Dynamic Levels Research Analysts have predicted it to further grow on the back of two huge upcoming events – UP elections and Union Budget 2017. The media coverage of the events will give a boost to the media sector. Political debates, panel discussions, expert views and election results will augment the growth of the media industry in the coming days of 2017.      

UP elections

A legislative assembly election is to be held in 2017 for the 403 seats of the Vidhan Sabha in the state of Uttar Pradesh. The dates of the election are yet to be announced. In the previous election in the year 2012, the Samajwadi Party won a majority and formed government under the leadership of Akhilesh Yadav.

Union Budget

Departing from the colonial-era tradition of presenting the Union Budget on the last working day of February, the Indian government finally announced that it shall now be presented on 1^st February, 2017. The announcement came just a day before the beginning of the month-long Winter Session of Parliament, held from 16^thNovember to 16^th December.

Prior to this, Prime Minister Narendra Modi on 26^th October had given a clear indication that Budget 2017 would be presented a month in advance. Urging the states to align their plans in accordance with the revised date of budget presentation, Narendra Modi had said that the new system would ensure faster implementation of schemes.

While, chairing his 16^th interaction through PRAGATI — the ICT-based, multi-modal platform for Pro-Active Governance and Timely Implementation on 26^th October, the PM had urged all states to align their plans with this advancement, so that they could take maximum benefit from this move.

Technical Analysis:

• Media Sector grew from 17^th February, 2016 (Budget) to 30 September, 2016:

 On 16^th February the Media Index was trading at 2100. Post Budget till 30^th September, 2016, the index rose by 50 per cent from 2100 to 3158. Thereafter it began correcting and stood at 2478 on 26^th December 2016.

• Top Performing Media Stock:

The top performing Media stock from 16^th February to 30^th September, 2016, was Zee Media. Zee Media share price grew by 134 per cent. Recently, on 22^ndNovember, the stock made a low of Rs 29 and since then till date it has risen 32 per cent and is currently trading at Rs 38.20.

• Other media stocks that rose from 16^th February to 30^th September, 2016 are as follows:

1. Jagran – rose 35 per cent
   
2. TV Today – soared 26 per cent
3. HT Media – grew 32 per cent

However, NDTV share price witnessed a fall of 10 per cent during this period. According to Dynamic Levels Research Analysts, media stocks can be a good bet for investment.