Adani stocks cheer incumbency wave in India, Australia
NEW DELHI/BENGALURU: Shares in various Adani Group companies, including those of flagship Adani Enterprises Ltd, surged on Monday after exit polls predicted Prime Minister Narendra Modi would return to power, even as Australian poll results also spelled good news for the conglomerate.
Adani Enterprises rose as much as 29 per cent in afternoon trade, its sharpest intraday gain in over two years. Other Adani Group stocks such as Adani Power, Adani Gas and Adani Green Energy Ltd were all up more than 15 per cent in afternoon trading.
The rally in Adani stocks outshone a broader market rally, which saw the benchmark indices close 3.7 per cent higher.
Billionaire Gautam Adani's rapid ascent to the top tier of Indian business is often associated with the rise of Modi, who is also from Gujarat.
Shares of Adani Enterprises have risen by about 170 per cent since Modi assumed power, compared to around 40 per cent under the previous Congress-led regime.
Adani has in the past brushed off any notions that he has been granted undue favours.
Separately, news that Australia's conservative coalition has swept back to power with an outright majority also boded well for Adani Mining Australia, which has been struggling for years to kick off its ambitious Carmichael coal mine project in Queensland due to environmental concerns.
Adani used the election results to slam the labour government in the state, saying the poll verdict reflected public consensus on the mine. "Let's hope they (Queensland government) realise it is time to start listening to the people of Queensland," Lucas Dow, CEO.