Synopsis: Adani group stocks saw a remarkable surge, with some rising up to 16%, as the BSE Sensex jumped over 2,600 points during the 'Modi rally'. The positive market sentiment was driven by exit polls indicating political stability and continuity, which is expected to benefit capex-related stocks.
Adani Enterprises surged 9.72% to reach a high of Rs 3,743. Adani Ports and Special Economic Zone (APSEZ) increased by 9.55% to Rs 875.
Adani Power soared 15.64% to Rs 875.
With the BSE Sensex climbing over 2,600 points in what is being called the 'Modi rally' today, several Adani group stocks reached their 10% circuit limits, fueled by expectations that political stability, as indicated by exit polls, would support high valuations for capex-related stocks.
Some Adani group stocks rose up to 16%, with the group’s market capitalization returning to pre-Hindenburg Research levels.
Adani Enterprises surged 9.72% to Rs 3,743.
APSEZ increased by 9.55% to Rs 875.
Adani Power jumped 15.64% to Rs 875.
Adani Energy Solutions Ltd climbed 9.38% to Rs 1,228.10.
Adani Green Energy Ltd advanced 9.65% to Rs 2,100.10.
Adani Total Gas Ltd surged 15.28% to Rs 1,197.95.
Adani Wilmar Ltd rose 6.94% to Rs 380.55.
ACC and Ambuja Cements gained 5-7%.
"Exit polls for the 2024 Lok Sabha elections suggest a comfortable majority for the BJP-led NDA, driven by gains in East and South India and continued strength in traditional strongholds. We expect (1) the equity market to be further energized by the polls (although the numbers are similar to pre-poll surveys) and (2) the government to continue with its economic agenda," Kotak Institutional Equities noted.
Kotak stated that the government will maintain its focus on key areas such as energy transition, infrastructure development, and manufacturing.
"We note that the government has already implemented most of the necessary reforms to incentivize private investments. In 2019, the BJP’s 100-day economic agenda emphasized boosting investments," it added.
Jefferies recently reported that the Adani group is resuming its expansion plans, aiming for $90 billion in capex over the next decade.
Adani Enterprises is scaling its manufacturing capacity to start Green Hydrogen production by FY27; Navi Mumbai Airport is expected to be operational by Q4FY25; Data Center projects are expanding.
For Adani Ports, it recently released a 5-year business roadmap, targeting an 18% EBITDA CAGR from FY24-29E.
"Ports EBITDA is expected to grow at a 16% CAGR, driven by expansion and ramp-up, with the company targeting 1 billion tonnes of cargo volume by 2030 (15% CAGR)," Jefferies stated.
Adani Green raised its 2030 power capacity target from 45 GW to 50 GW, including 5GW of pumped hydro.
Adani Total Gas plans to expand into new business segments, including LNG station networks for transport and the mining sector, and EV charging facilities.
"Adani Wilmar is focused on distribution expansion, ramping up alternate channels, and improving the mix of premium brands," Jefferies said.
In conclusion, Adani group stocks experienced a significant rally, with several stocks hitting circuit limits and market capitalization returning to pre-Hindenburg Research levels.
The surge was driven by positive sentiment from exit polls suggesting political continuity, which is expected to support capex-related stocks.
Key Adani companies, including Adani Enterprises, Adani Power, and Adani Ports, saw substantial gains, and the group is poised for extensive future expansion across various sectors.
Investors are optimistic about the government's continued focus on economic development and infrastructure, reinforcing the Adani group's strong market performance.
However, it is essential to consult with a qualified financial advisor before making any investment decisions.
Disclaimer: The stock market news provided is for informational purposes only and should not be considered as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Related Questions
1. What caused the surge in Adani group stocks?
The surge was fueled by expectations of political stability, supported by exit polls, which indicated a comfortable majority for the BJP-led NDA.
2. What are some key points regarding Adani Enterprises' expansion plans?
Adani Enterprises is scaling its manufacturing capacity for Green Hydrogen production by FY27 and expects the Navi Mumbai Airport to be operational by Q4FY25.
3. What are some highlights of Adani Ports' 5-year business roadmap?
Adani Ports targets an 18% EBITDA CAGR from FY24-29E, with Ports EBITDA expected to grow at a 16% CAGR, driven by expansion and ramp-up.
4. What expansion plans does Adani Total Gas have?
Adani Total Gas plans to expand into new business segments, including LNG station networks for transport and EV charging facilities.
5. What are the future power capacity targets for Adani Green Energy?
Adani Green Energy raised its 2030 power capacity target from 45 GW to 50 GW, including 5GW of pumped hydro.
