Not Just NDA, Exit Polls Make Adani Group Happy; Stock Rises 21%
Adani Enterprises was up 21.04% to Rs 144.40 per share on the National Stock Exchange in early trade.
Exit polls, whether they are accurate or not, tend to have a domino effect on the markets. On May 20, a day after all exit polls predicted an overwhelming National Democratic Alliance majority in the just-ended Lok Sabha polls, the markets jumped in joy. As per reports, the benchmark Bombay Stock Exchange (BSE) Sensex surged over 1096 points (2.89 per cent) at 39027.25 points, and the National Stock Exchange (NSE) Nifty rallied at 11733.75, up by 326.60 points or 2.86 per cent in early trade.
As per The Hindu, all sectoral indicators had also reported impressive gains. The BSE S&P Bharat 22 index was up 4.04 per cent; the BSE S&P 100 index was up 2.91 per cent. As per the Indian Express, the Rupee appreciated 79 paise to 69.44 against the US dollar in opening trade on Monday.
But, the BSE, the NSE and even the Rupee have nothing in terms of gains when it comes to the Adanis. As per reports in CNBC TV-18 and Money Bhaskar, shares of the Adani Group stocks were trading higher on Monday after the exit polls predicted a saffron party surge.
Per CNBC, at 12:18 am, Adani Enterprises was up 21.04 per cent to Rs 144.40 per share on the National Stock Exchange. Meanwhile, Adani Green rose by 14.04 per cent to Rs 42.65 per share followed by Adani Power and Adani Gas, which were up 14.39 per cent and 13.72 per cent respectively.
Shares of the Adani Group companies reportedly advanced between seven per cent and 21 per cent during the opening trade, the day after the release of the exit poll data.
The Adani Group and the Narendra Modi-led Bharatiya Janata Party government, by many accounts, share a unique relationship. A recent report by M Rajshekhar in Scroll.in, examined how over the past five years — the Modi regime — the Adani Group had expanded its presence across India. From being the country’s largest private port operator, coal importer, coal miner, private power producer, city gas distributor and importer of edible oils, it also expanded into airports, urban water management, small and medium sector lending, power transmission and distribution, data centres, aerospace and defence.
The Adani Group, as per another Scroll.in investigation, has received tacit support from the ruling government. How else would one explain the group obtaining approvals to pass on higher coal prices to end customers after the Bharatiya Janata Party governments in Gujarat and the Centre stepped in?
Exit polls have a history of being inaccurate. But that does not mean that they have no inherent worth. At least to the market, and especially for the Adani Group, the projection of another five years of the NDA rule would be beneficial.