Adani group stocks zoom as Modi win lifts markets
Adani group stocks were on fire on Friday as the Narendra Modi-led NDA won a historic election victory. Two of the three stocks hit their 52-week highs during intra-day trades, while the third reached within striking distance of that peak.business Updated: May 16, 2014 22:05 IST
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.