Sun TV is one bright star today and it has got nothing do with the earnings or any corporate development in the company. Its all about the expected elections results on 2nd May.
The stock opened over 1% higher at Rs.525 and went on to an intraday high at Rs.539, up almost 4%. Its 52-week high is at Rs.570.70.
Many exit polls have it that the DMK will come back to power in the Assembly election in Tamil Nadu. This affects Sun TV directly as it is owned by Kalanithi Maran, son of the late DMK stalwart Murasoli Maran and grand-nephew of late DMK patriarch M Karunanidhi.
The perception is that once DMK comes to power, Sun TV will get a leg-up in terms of advertising revenue and cable business.