Shares of Adani Group companies, such as Adani Green Energy Limited, Adani Enterprises Limited, and Adani Ports, surged by up to 12% in Wednesday’s trading. This comes after a previous session’s rally, as brokerages believe that the next government under Prime Minister Narendra Modi could continue to support investment-led growth and capital expenditure (Capex) in its third term.
The Sensex increased by more than 3% in a single day, with Adani Enterprises Limited rising by 6.35% to ₹3,126.50. Adani Ports gained 8% to ₹3,126.50, Adani Green Energy surged by 11.81% to ₹1,840.90, and Adani Total Gas increased by 2.03% to ₹926.90. Ambuja Cements and ACC saw gains of 5-8%.
Modi, who today submitted his resignation along with his cabinet to President Droupadi Murmu, is likely to be sworn in as Prime Minister for a third consecutive term on the evening of June 8, according to sources reported by India Today.
The NDA has won 292 seats, surpassing the majority mark, though the BJP alone failed to achieve a majority. If the NDA forms the government, Modi would be the second leader, after former Prime Minister Jawaharlal Nehru, to remain in power for three consecutive terms.
Despite the reduced majority, Motilal Oswal Securities expects that Modi’s policy agenda 2.0 (investment-led growth, Capex, infrastructure development, manufacturing) will continue, albeit with some adjustments.
“While the broad emphasis on Capex and investment-led growth continues, future agendas might include measures to revive lower-tier consumer demand, some relief in tax regimes, and adjustments to the GST framework. The government has some flexibility with higher RBI dividends and the recent decline in Brent crude prices,” Motilal Oswal Securities noted.
Kotak sees a continued focus on energy transition and infrastructure development. The government has already implemented most of the necessary reforms to incentivise private investment, and now execution will be more critical, it added.
