Dayanidhi Maran, who resigned after a weekend jolt in the DMK party that sought his exit as Communications and Information Technology Minister, said on Monday that he was not connected with the Sun TV network controlled by his younger brother Kalanidhi.
But the markets did not seem to care for his stated position and attached significance to his political fall. Shares of Sun TV lost 3.6 per cent in a flat stock market, sliding by Rs. 55.6 to Rs. 1,478.90, even as most media and entertainment stocks posted smart gains.
While the shares of Sun TV were slipping into the red, those of its closest rival Raj TV galloped 20 per cent to get hit the upper circuit filter. Raj TV gained Rs 37.90 to close the day at Rs 213.57. Major gainers in the sector were Zee Entertainment (up 3.07 per cent at Rs 292.50), Zee News (up 3.66 per cent at Rs 43.85) and Television 18 (up 3.44 per cent at Rs 750.85).
Since Monday, Sun TV shares have dropped 7.78 per cent or Rs 124.95. Though there are concerns in broking circles that the rift between Dayanidhi Maran and Tamil Nadu Chief Minister Karunanidhi could lead to a dent advertising revenues of Sun TV, analysts are of the view that the drop in share prices is just a knee-jerk reaction to Maran's unexpected exit from the union cabinet.
"The sell-off is just a reaction that is magnified by some interested parties in the political circles and brokers," said the head of a domestic brokerage who asked not to be identified.
The resignation by Dayanidhi, son of late former Commerce Minister Murasoli Maran, who was a nephew of Karunanidhi, came under mounting demand within the party four days after Dinakaran, a daily controlled by Kalanidhi Maran, exposed chinks in the party's first family by carrying out an opinion poll on who was perceived as Karunanidhi's successor.