HindustanTimes Mon,24 Nov 2014

Adani group stocks zoom as Modi win lifts markets

HT Correspondent , Hindustan Times  Mumbai, May 16, 2014
First Published: 22:00 IST(16/5/2014) | Last Updated: 22:05 IST(16/5/2014)

Adani group stocks were on fire on Friday as the Narendra Modi-led NDA won a historic election victory. Two of the three stocks — Adani Enterprises, Adani Ports & Special Economic Zone — hit their 52-week highs during intra-day trades, while and Adani Power reached within striking distance of that peak.


The Adani Enterprises stock rose about 9% to touch a 52-week high of Rs. 585, Adani Ports and Special Economic Zone soared to its highest level of `235.40 in a year.

However, all three stocks gave away some gains towards the second half of the trading session due to profit taking at higher levels.

The Gautam Adani-owned companies have been in the limelight over the past couple of months for the group’s perceived closeness to Narendra Modi and also over Congress vice president Rahul Gandhi questioning a land deal in Gujarat.

Due to the sharp rise in the prices of these three stocks, the market capitalisation of the group has touched Rs. 1.2 lakh crore, marking the group’s entry into the league of the 10 most valuable business houses in India.

In fact, the market capitalisation of the group has more than doubled since Narendra Modi was announced as the BJP’s prime ministerial candidate on September 13, 2013..

Traders are also betting on other Gujarat-based companies like Torrent Power, Arvind, Zydus Wellness, GHCL and Gujarat Fluro. The stocks these companies were also in the limelight during the day.

Marketmen are speculating that these firms would benefit under a Modi-led government.

“We have seen good buying in these stocks as the market expects Modi to take measures that will help the companies from his home state,” said an analyst at a leading broking firm.

more from Business

Rupee gains 8 paise against dollar in early trade

The rupee, on Monday, strengthened by four paise to 61.68 against the dollar in early trade following increased selling of the US currency by exporters and banks amidst sustained foreign capital inflows.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved