Shares of Adani Group stocks jumped in early trade on Thursday after early trends indicated that Narendra Modi-led National Democratic Alliance (NDA) is set to gain majority in the Lok Sabha elections 2019. Adani Enterprises Ltd shares surged as much as 14.4% in trade on Thursday. Adani Green Energy jumped 7.4%, Adani Gas was up 8.9%, Adani Ports and Special Economic Zone Ltd climbed 11.1%, Adani Transmission Ltd rose 7.2%, while Adani Power Ltd gained 8.9%.
The Sensex, meanwhile, hit an intraday high of 40,125, jumping over 1,000 points. But, the benchmark index later trimmed gains to trade at 39,544.28, up 434.07 points, or 1.11%, at 11:28am.
Adani Enterprises have risen by about 170% since Narendra Modi became prime minister in 2014, compared with around 40% gains seen under the previous Congress-led regime.
Adani Group stocks have historically performed well whenever the Bharatiya Janata Party (BJP) government has tasted victory -- either in Gujarat assembly elections or in the Lok Sabha elections -- because of the perception that the group chief Gautam Adani is close to Modi. Adani Group shares had soared up to 17% on the day of counting of votes during the 2014 Lok Sabha elections as well.
In a related development, Australia’s conservative coalition returning to power with an outright majority has also boded well for Adani Mining Australia, which has been struggling for years to kick off its Carmichael coal mine project in Queensland due to environmental concerns. Adani Mining Australia used the election results to slam the labour government in the state, saying the poll verdict reflected public consensus on the mine.
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