Adani stocks rally up to 16%; market cap crosses Rs 14 lakh crore mark
Adani Group stocks extended to the fourth day as nine out of 10 stocks traded in the green with Adani Green Energy and Adani Total Gas rising by 16%. Nifty constituents Adani Enterprises and Adani Ports and Special Economic Zone were the top index gainers in the early trade as they rose 6% and 7%, respectively.
On Wednesday, the combined market cap of all Adani Group companies stood at Rs 14.65 lakh crore.
Meanwhile, Adani Energy Solutions, Adani Power, NDTV, Adani Wilmar and Ambuja Cements gained between 13% and 1.2% around 9:35 am.
The only laggard was ACC which fell by 0.44%.
Adani Group stocks on Tuesday added Rs 1.93 lakh crore to their combined market capitalisation, registering their best single-day market performance. The total market capitalisation of all the companies was shy of the Rs 14 lakh crore mark on Tuesday.
The rally has been triggered by wins by Bharatiya Janata Party (BJP) in three states in the Hindi heartland viz, Rajasthan, Madhya Pradesh and Chhattisgarh, lending more confidence to the Street for the return of the incumbent government in the 2024 general election.
The Adani Group also received a shot in the arm following a Bloomberg report that quoted an unnamed of the US International Development Finance Corporation (DFC) as saying that the allegations by Hindenburg Research were not relevant. The US agency had recently announced funding of $553 for the Group's port business in Sri Lanka.
Speaking on the link of the current BJP victory with the prospects of domestic markets, Motilal said, “While state elections have shown no correlation with Lok Sabha elections in the past, it nonetheless removes a key overhang of political uncertainty for the markets for the next five months".
V K
