Sun TV stock falls for third straight session on security nod worries for 33 channels

Shares of Sun TV Network fell sharply by nearly 9 per cent on Wednesday, extending losses for third straight session, on worries related to security clearance to its 33 channels.

The stock slumped 8.96 per cent to settle at Rs 293.10 on BSE. During the day, it plunged 12.71 per cent to Rs 281.

Shares of Sun TV dipped 8.95 per cent to close at Rs 293.15 on NSE.

In three days, the stock has lost over 12 per cent.

During this period, the company's market value fell by Rs 1,593.38 crore to Rs 11,550.62 crore.

"Sun TV continued to face bearish pressure and was seen correcting another 12.7 per cent in the day's trade," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

Since June 5, the stock has lost nearly 18 per cent.

According to media reports, the PMO has found more merit in the Home Ministry's decision to deny the broadcaster security clearance to the channels.

Meanwhile, Attorney General (AG) Mukul Rohatgi has supported grant of security clearance to 33 channels of the Kalanithi Maran-promoted firm.

Shares of Sun TV Network had soared almost 8 per cent on Friday after Rohatgi supported grant of security clearance to the channels.

The AG has supported grant of security clearance, saying the corruption cases being investigated against the network's promoter cannot be the ground to deny permission.

The AG was approached by the Information and Broadcasting Ministry to seek the opinion after the Home Ministry denied security clearance to the network.

The I&B Ministry issues broadcasting licences for which companies require a security nod from MHA.

The ministry had earlier been informed about the decision of the Home Ministry denying security clearance to the TV network, which is believed to have been influenced by pending corruption cases against Maran and his brother, former Union Minister Dayanidhi Maran.

In the stock market, the BSE Sensex ended at 27,729.67, down 74.70 points.