The conglomerate, headed by billionaire Gautam Adani, has made significant investments across various sectors such as mining, ports, trading, electricity, and gas, aiming to leverage the government's focus on infrastructure development under Modi's administration.
Shares of three Adani Group companies reached unprecedented levels on Monday, following a widespread surge in the conglomerate's stock amidst exit poll projections indicating a third consecutive term for Prime Minister Narendra Modi.
Adani Ports experienced a notable increase of 12.8%, reaching a new peak, while Adani Power surged by nearly 18%, and Ambuja Cements also achieved record highs with a rise of approximately 7%. Additionally, Adani Enterprises, the flagship firm of the group, saw a significant advancement of nearly 10%, while Adani Green, a renewable energy company, climbed by 14%, marking its highest level since January 2023.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, commented that continued government tenure could lead to a heightened emphasis on infrastructure, benefiting several Adani Group entities deeply entrenched in this sector.
Adani Ports and Adani Enterprises emerged as top performers on the Nifty 50 index, which also reached a historic high, reflecting the assurance of political stability conveyed by the exit polls. Despite the index's nearly doubled growth since Modi's re-election in 2019, Adani Group stocks witnessed a staggering surge ranging from 300% to 4,500% during the same period, outpacing the broader infrastructure and energy indexes.
Citi analysts anticipate favorable performance in the medium term for stocks associated with infrastructure and logistics, including Adani Ports.
Other companies within the Adani group also experienced notable gains, with increases ranging from 5% to 9% observed in Adani Energy Solutions, Adani Total Gas, Adani Wilmar, and ACC, alongside news broadcaster NDTV.
(Source: ET)
