MUMBAI, May 22 (Reuters) - A clear mandate for India's ruling coalition, indications of an economic revival and hopes of regulatory reforms will boost prospects for media firms, according to a report by Media Partners Asia (MPA).
The left-of-centre Congress coalition won a second term after a clear victory over the weekend, bolstering hopes for stability and fast-paced reforms. For related stories see [IN-VOTE]
"The result will have a positive impact at the macro level for both the economy and the media sector. It may also provide a much needed boost to the media regulatory framework," the report said.
The government may look to raise foreign direct investment levels in key sectors, including media, with the focus likely towards driving money into improving media infrastructure and distribution in particular, it added.
Shares in media broadcaster Zee Entertainment has jumped 17 percent since the election results were announced, while IBN 18 surged 37 percent and Television Eighteen rose over 21 percent.
Newspaper publisher HT Media has risen 44 percent, while Deccan Chronicle and Jagran Prakashan have risen by a quarter each. The 30-share BSE index <.BSESN> has risen nearly 13 percent in the period.
MPA projections indicate that advertising growth will slow to 5.1 percent in 2009 from 15-20 percent in 2006 to 2008, before improving to 8.2 percent in 2010 and 13.2 percent in 2011.
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