Adani shares gain up to 15% as market bets on BJP 2024 election prospects
Adani group stocks rallied in Monday’s trade, in line with a broader rally in the share market, amid hopes the BJP government may win the third term in the general elections due next year. The Adani group flagship Adani Enterprises hit a 10 per cent upper circuit limit at Rs 2,584.05 on BSE. Shares of Adani Green Energy Ltd climbed 14.75 per cent to hit a high of Rs 1,178 on BSE. Within minutes into trading, shares of Adani Power Ltd were up 5.62 per cent at Rs 464.95.
Adani Energy Solutions shares gained 6.61 per cent to Rs 912.55. Adani Total Gas Ltd advanced 6 per cent to Rs 743.30. Adani Ports and SEZ added 4.27 per cent to Rs 862.85. This Adani stock also gained after the company recoded a cargo volumes of 36 mmt in November, up 42 per cent YoY.
Two of Adani group cement companies, ACC Ltd and Ambuja Cements Ltd, saw their shares climbing up to 4 per cent. Adani Wilmar Ltd rose 2 per cent.
“An INC sweep of the state elections would have led markets to reassess their probability of the BJP returning to power in the 2024 general elections with a strong majority. It would have strengthened INC’s leadership position within the fractious anti-BJP opposition alliance, I.N.D.I.A. Instead, the INC’s poor performance is likely to make for more differences within the opposition camp,” said Nomura India.
“Also, the strong performance of the BJP should somewhat allay market concerns around political risks into the general elections. It indicates that there is broad political support for the BJP and PM Modi, and reaffirms the early opinion polls for the general elections that have so far predicted a clean sweep for the BJP. These Hindi heartland states account for close to 12 per cent of the Lok Sabha (Lower House) seats and have traditionally been a strong support base for the BJP at the centre,” it said.
VK Vijayakumar of Geojit Financial Services said the hare market prefers political stability and a reform-oriented, market-friendly government. From that perspective, he said, the state election results were better-than-expected.
“The market has already partly discounted a BJP victory with a 500 point rally during the last 4 sessions. But the mood is so exuberant that the rally will continue,” he said.
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