Adani group stocks rallied between 2% and 10% on Monday following the victory of the Bharatiya Janata Party (BJP) in three key state elections. These wins are seen as a harbinger of the BJP's performance in the general elections in April-May 2024. Analysts said the BJP's expected return to power in 2024 is perceived by the market to be positive for the group.
The Gautam Adani-owned group's market capitalisation surged by over ₹73,000 crore on Monday to ₹11.94 lakh crore, though this is still ₹7.26 lakh crore below the highs seen before January 24 this year. On January 25, a scathing report by US short-seller Hindenburg alleging wrongdoing by the group triggered a sharp erosion in the share prices of the group companies.
The conglomerate's market capitalisation has surged nearly $20 billion or ₹1.67 lakh crore since November 28, after the Supreme Court reserved its judgment on pleas seeking an investigation into the allegations made by Hindenburg against the Adani Group. Oral observations by the court that the Hindenburg report need not be taken as gospel truth were seen by the market as positive.