Most Adani Group stocks extended losses on Wednesday after Prime Minister Narendra Modi’s ruling Bharatiya Janata Party failed to secure a Lok Sabha majority on its own and was set to depend on a coalition to form a government.
What Happened: Adani Group stocks were trading in the red for the second straight session as concerns remained about policy stability under the new regime, given the lack of a single-party majority.
On Tuesday, Adani Ports led the decline with a 20% crash, while shares of all 10 Adani Group companies closed lower with double-digit percentage losses. The total market capitalisation of the 10 Adani stocks decreased by around ₹3 lakh crore on Tuesday.
In Monday’s session, Adani stocks had been among the top gainers as exit polls forecast a decisive victory for Modi, exceeding 350 seats. This rally had helped Adani stocks erase all losses incurred following the Hindenburg report, with their market capitalisation nearing the ₹20 lakh crore mark after a 16-month gap.
Analyst Views: Jefferies has issued “buy” recommendations for Adani Enterprises with a target price of ₹3,800, Adani Ports with a target price of ₹1,640, and Adani Energy Solutions with a target price of ₹1,365.
Last week, CLSA identified Adani Ports, Adani Enterprises, ACC and Ambuja Cement in its list of 54 stocks that would see an upside from a Modi win. This list also includes public sector firms and companies from various other sectors perceived as direct beneficiaries of Modi's policies.
Adani Ports will be included in the Sensex starting June 24.
Price Action: Most Adani stocks were down in early trade on Wednesday, deepening losses from the previous session.
- Shares of Adani Enterprises were down 2.9% at ₹2,856.50.
- Shares of Adani Energy Solutions were down 8.51% at ₹894.5.
- Shares of Adani Power were down 5.01% at ₹686.
- Shares of Adani Ports were down 2.5% at ₹1,218.
- Shares of Adani Total Gas were down 2.27% at ₹888.1.
- Shares of Adani Wilmar were down 0.6% at ₹329.45.
- Shares of NDTV were up 0.42% at ₹214.45.
- Shares of Adani Green Energy were up 0.68% at ₹1,657.25.
- Shares of ACC were also up 0.68% at ₹2,297.65.
- Shares of Ambuja Cement were up 0.59% at ₹559.90.
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