The market capitalisation of the Gautam Adani-led group neared the Rs 20 trillion mark on Monday as investors lapped up shares of all the 10 listed companies belonging to the ports-to-airports conglomerate amid euphoria triggered by the exit polls.

Shares of group companies soared between 3.5 per cent and 15.5 per cent, adding Rs 1.6 trillion in a day to the total market capitalisation of Rs 19.43 trillion—highest since January 18, 2023. The Adani group’s current value is only 15 per cent below its all-time high level of Rs 23 trillion on September 20, 2022, and is above the levels seen before US-based short seller Hindenburg Research released its report on January 24, 2023, alleging malpractices.

Flagship Adani Enterprises, engaged in the mining and coal business, added 7 per cent, while Adani Ports rose 10 per cent. Both companies touched their 52-week highs today. Ambuja Cements also peaked at its all-time high with a 5.7 per cent gain on Monday’s trade.

On Friday, the group had added over Rs 83,000 crore in market cap. The latest gains come on the back of exit polls predicting the continuance of the National Democratic Alliance (NDA) led by Prime Minister Narendra Modi at the centre with a two-thirds majority.

Exit polls, which came after the final phase of voting on Saturday, are predicting the NDA to bag between 316 and 400 seats in the 543-member lower house of the parliament.

The rally in the conglomerate group also followed a bullish outlook by brokerage firm Jefferies on the back of strong financial performance in FY24.

The brokerage house has given a price target of Rs 3,800 for Adani Enterprises and Rs 1,640 for Adani Ports with a ‘buy’ recommendation. For Adani Energy Solutions and Ambuja Cements, the brokerage has set a target of Rs 1,365 and Rs 735, respectively, indicating an upside of 10 per cent to 11 per cent from current levels.

Barring Adani Energy Solutions, Adani Total Gas, and Adani Wilmar, most other group stocks have recouped most of the losses since the Hindenburg report.

First Published: Jun 03 2024 | 6:52 PM IST