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 Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “Market likes political stability and a reform-oriented, market-friendly government. From the market perspective, the results were better than expected.”
Stock prices of Adani group companies have been on the rise since last week after the Supreme Court on November 24 reserved its verdict on a batch of petitions seeking examination of allegations of fraud against the conglomerate.
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