India's Adani Group rallies on infrastructure bets as Modi seen retaining power

New Delhi Television

03/06/2024 09:43

By Sethuraman N R
       BENGALURU, June 3 (Reuters) - Shares of three Adani
Group companies hit record highs Monday amid a broad-based rally
in the infrastructure-focussed Indian conglomerate after exit
polls predicted a third straight term for Prime Minister
Narendra Modi's government.
    The 10-company conglomerate, led by billionaire Gautam
Adani, has invested billions of dollars in mining, ports,
trading, electricity and gas among other sectors to benefit from
the Modi government's emphasis on infrastructure development.
    On the day, shares of Adani Ports  APSE.NS  jumped as much
as 12.8% to a record high, while Adani Power  ADAN.NS  surged
nearly 18% and Ambuja Cements  ABUJ.NS  rose about 7% to also
hit all-time highs.
    Shares of Adani Enterprises  ADEL.NS , the group's flagship
firm advanced nearly 10%, while renewable energy company Adani
Green  ADNA.NS  climbed by 14% to their highest since January
2023.
    "If the current government is going to continue for a third
term, the growth in infrastructure will be a big focus. Many
Adani Group companies are heavily into infrastructure and hence,
we are seeing action in these stocks," said Prashanth Tapse,
Senior VP (Research), Mehta Equities.
    Adani Ports and Adani Enterprises were among the top 10
gainers on the benchmark Nifty 50  .NSEI  index, which also
rallied to a record high as the exit polls ensured political
continuity.
    The index has nearly doubled since 2019, when Modi was
elected for a second term. The Adani Group stocks have, however,
sky-rocketed between 300% and 4,500% in that period. The broader
infrastructure  .NIFTYINFR  and energy  .NIFTYENR  indexes have
just over doubled in value.
    Citi analysts said they expect stocks exposed to the
infrastructure and logistics sector, including Adani Ports, to
do well in the medium term.
    Among other Adani group companies, there were 5% to 9% gains
in Adani Energy Solutions  ADAI.NS , Adani Total Gas  ADAG.NS 
and consumer goods company Adani Wilmar  ADAW.NS , as well as
news broadcaster NDTV  NTDV.NS  cement maker ACC  ACC.NS .

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Performance of key Adani group stocks since May 22, 2019    https://reut.rs/3V50nLq
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 (Reporting by Sethuraman NR in Bengaluru; Editing by Savio
D'Souza)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))