The Media is one of the four pillars of democracy, and it indeed is. If you look around, everyone in one form or the other is consuming/using media content. As per a PWC report, the revenue of the Indian entertainment and media industry can increase at a CAGR of 8.3% and reach ₹365000 crore by 2028. So, this can be a good time for investing in the media industry, but you need to understand how the industry is performing and monitor it for the right investment opportunities. All these can be done using one index, and that is the Nifty Media Index.
This article will be all about the Nifty Media Index, its constituents, performance over different periods, risk factors, and a lot more.
NIFTY MEDIA Index – Overview & Constituents
The Nifty Media index reflects the performance of the top 15 media and entertainment companies listed on the NSE, which are engaged in print and publishing activities. The maximum stocks included in the index is 15. It is used as a benchmark for the Media industries’ performance.
The nifty Media index stocks list includes – (As of 28 March 2025)
| D.B.Corp Ltd. |
| Dish TV India Ltd. |
| Hathway Cable & Datacom Ltd. |
| Nazara Technologies Ltd. |
| Network18 Media & Investments Ltd. |
| PVR INOX Ltd. |
| Saregama India Ltd |
| Sun TV Network Ltd. |
| Tips Music Ltd. |
| Zee Entertainment Enterprises Ltd. |
The top ten stocks by weightage –
| Stocks | Weight in the Index (%) |
| Zee Entertainment Enterprises Ltd. | 23.86 |
| PVR INOX Ltd. | 17.12 |
| Sun TV Network Ltd. | 16.88 |
| Nazara Technologies Ltd. | 10.40 |
| Saregama India Ltd. | 10.18 |
| Tips Music Ltd. | 7.63 |
| Network18 Media & Investments Ltd. | 7.46 |
| D.B. Corp Ltd. | 3 |
| Dish TV India Ltd. | 1.96 |
| Hathway Cable & Datacom Ltd. | 1.52 |
Selection Criteria
The stock selection criteria for the equity index Nifty Media index include –
- Stocks should be from the Nifty 500 universe; however, in case the number of eligible stocks of a particular sector within the Nifty 500 gets below 10, then stocks from the top 800 companies of the Nifty universe, based on average daily turnover and daily full market capitalization of the past six months.
- Companies have to be engaged in dealing in the Media and entertainment sector.
- Minimum trading frequency of the eligible stock has to be 90% in the past six months.
- As of the cutoff date, the listing history of the company has to be at least one mont.h
- The final selection of the companies will be done based on free-float market capitalization.
Factors Affecting the NIFTY MEDIA Index
The factors that affect the Nifty Media index are the factors that affect the media and entertainment business in India, and those include –
- Economic Factors: Different economic factors play pivotal roles in shaping the Media & Entertainment (M&E) industry. For instance, Media houses run on advertisements of different products and services, so consumer preferences and consumer spending affect this industry significantly. The overall economic scenario also plays a significant role as that determines the costing, revenue, and profit-making potential of these businesses in this industry.
- Technology: In the current landscape, technology has penetrated into every inch of M&E industry. Whether it is the OTT platforms, social networking sites, online news portals, all these have changed the industry completely. Thus, technological advancement has become the base for the growth of this industry.
- Legal and Regulatory Framework: The regulatory framework in a nation determines its M&E sector’s growth too. If there are lot of regulations imposed on publishing content, then the businesses may not grow as they should. This can harm the potential profits and in turn the share prices taking a toll on the index value as well.
NIFTY MEDIA Index Calculation Method
For the Nifty Media index, the stocks are selected based on free-float market capitalization.
Here, once the stocks are shortlisted as per the selection criteria given above, then each of the stocks is assigned weights according pee the free-float market capitalization.
For assigning weights, you need to keep in mind that no individual stocks should have more than 33% of the weight and top three stocks together shouldn’t have more than 62% of the weight of the index.
Now once the stocks are weighted, and then they values are summed up to be divided by the base market capitalisation value to derive the index valuation.
The formula to derive the index value –
Nifty Media Index Value = (Free-float Market Cap/ Base Market Cap) *Base Price
Performance and Returns
Here are the returns for different periods –
| Period | Price Return (%) | Total Return (%) |
| YTD | -18.85 | -18.65 |
| 1 Year | -17.85 | -17.28 |
| 5 Years | 7.24 | 7.86 |
| Since Inception | 2.04 | 3.09 |
Risk and Volatility
Nifty Media invests particularly in the media and the entertainment businesses, which reduces the diversification across sectors, which makes it a bit more risky than diversified indices.
The standard deviation of the index for 1 year stands at 27.16%, while that for 5 years is 29.51%, and since inception, it is recorded at 23.38%.
The beta compared to the Nifty 50 is a slightly higher which represents the volatility. For 1 year the beta is 1.07 which means the volatility of the Nifty Media index is a bit higher than nifty 50.
How to Invest in the NIFTY MEDIA INDEX?
You can invest in the Nifty Media Index using ETFs, index funds, or you can trade them on the trading platform. You can also trade Nifty Media Index futures and options in the F&O section of Shoonya’s app. To do so, you have to add the index to your watchlist following these steps –
- Open the Shoonya app.
- Head to the “Watchlist” tab located at the bottom of your screen.
- In the search bar, type “NIFTY IN” or “SENSEX IN” and add it to the watch list, and then you will be able to see the indices.
- Once you find your desired index, click on the add option given on the right side.
- Now you can see the index on the watchlist.
Conclusion
The Nifty Media Index has been consistent in its growth over the years, it has been slow but steady. Given the current scenario, when the demand for good content and media is increasing, the sector is anticipated to boom in the upcoming years, which can take the index higher as well.
Nifty Media Index | FAQs
NIFTY Media index is a free-float market capitalization index. Free float market cap represents the market capitalization excluding the stocks held by promoters, government, trusts, and other similar organizations.
Nifty Media is rebalanced twice a year. The cut-off dates for the same are 31 January and 31 July.
The current PE of the NIFTY MEDIA index is 0.
The current PB of the NIFTY MEDIA index is 1.2.
The current dividend yield of the NIFTY MEDIA index is 1.14.
The Nifty Media index was launched on 19 July 2011.
The base value used for index calculation is 1000.
Source: NSE
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.