New Delhi: Adani Group Shares witnessed significant gains on December 4, attributed to a growing risk appetite among investors, bolstered by strong macroeconomic indicators and the Bharatiya Janata Party’s (BJP) electoral victories in three states. Adani Enterprises’ shares surged by 7%, Adani Green Energy rose by 9.4%, Adani Total Gas gained 4.4%, Adani Power increased by 5.5%, Adani Wilmar saw a rise of 1.72%, and Adani Ports experienced a 6.2% increase.
Other Adani Group companies also benefited, with NDTV’s share price rising by 3%, Ambuja Cements climbing by 7.3%, and ACC increasing by 6.3%. The collective market capitalization (m-cap) of Adani Group stocks reached approximately ₹11.96 lakh crore on that day, marking a substantial increase of over ₹73,000 crore in a single day, as per Capital Market data.
The gains in Adani stocks contributed to a notable boost in Gautam Adani’s net worth, with Bloomberg reporting an addition of $5.6 billion in the week following the Supreme Court’s conclusion of hearings related to a lawsuit involving the Securities and Exchange Board of India (SEBI) investigating various allegations of corporate misconduct against the conglomerate.
Simultaneously, the broader market indices also achieved record highs, with the Nifty 50 reaching 20,702.65 and the Sensex touching 68,918.22. The BSE Midcap and Smallcap indices also hit record highs of 35,124.23 and 41,221.91, respectively. These milestones were reached amid a backdrop of optimism surrounding the political stability in the country, fueled by the BJP’s victories in the state elections.
The BJP secured wins in Madhya Pradesh, Rajasthan, and Chhattisgarh, enhancing its prospects for the upcoming general election. This outcome raised concerns for the opposition, particularly the Congress party, which now faces challenging seat-sharing negotiations with potential allies in the INDIA bloc. The market responded positively to the election results, signalling renewed optimism and potential for further market rallies.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked, “The state elections results have turned out to be a big event which can trigger renewed optimism and further rally in the market. The market likes political stability and a reform-oriented, market-friendly government. From the market perspective, the results were better than expected.”