Sun TV effects at the markets: Bright and sunny

Shares of Sun TV Network, south India's biggest media group, surged more than 10 percent after the cable-to-channel giant announced market beating earnings for the first quarter.

Sun TV, owned by Maran brothers, said its profit in the first quarter rose 19.4 percent to 197 crore rupees compared with 165 crore rupees in the same quarter a year ago. Total Income rose 9 percent to 691 crore rupees during the April-June quarter versus 664 crore rupees in the same period a year ago. Sun TV's operating margin soared to 59.2 percent and its income from advertising rose 16 percent to 324 crore rupees.

Sun TV Futures were the top gainers in the derivatives space, adding 11 percent, or 33 rupees, to 341 rupees on the National Stock Exchange where 49 lakh shares were traded by 1:45 pm compared with the 5-day average of 39 lakhs.

Sun TV's market capitalisation has come off 20 percent in the past one year to 13,350 crore rupees after the media house was embroiled in a public battle with the government, which barred the group from bidding for FM radio waves. The matter has since been resolved.

(Image credits: Reuters)