An equity index that houses India’s biggest operator of cinema screens as well as its top television broadcaster has lost about 6% since reaching a 17-month high in early September. Still, up 31% this quarter through Friday, the gauge is poised for its best performance since 2009. In comparison, a weighted average gauge of 14 Asian media stocks including China Film Co. and South Korea’s Hybe Co. has lost more than 4%.
The Cricket World Cup is an important variable. In India, cricket enjoys a cult-like following, with its massive entertainment appeal rivaled only by Bollywood — as Mumbai’s film industry is known. Together, their clout is unmatched in the local media and entertainment sector, which is touted as one of the biggest beneficiaries of a consumption boom. The sector is poised to grow at a compounded annual growth rate of 9.7% to reach $73.
Ad spending by Indian firms is expected to rise to as much as 10% for the year thanks to the festivities and upcoming matches, according to Karan Taurani, an analyst at Elara Securities India Pvt. That’s up from about 6-7% in the first half of the 2023. Companies are expected to spend a total of 20 billion rupees on promotions on television and digital media during the games, he added.
Investors will be keen to watch if the upcoming movies — from Tiger 3 starring Salman Khan to Dunki featuring Shah Rukh Khan — can live up to their hype. Shah Rukh Khan has delivered this year’s two biggest bollywood hits.