Adani stocks surge on 'Modi wave'

Adani stocks continue to move up sharply, momentum coming in through ‘Modi wave’. Adani Power is up today, once again amongst the top five gainers on the BSE. It is up 5.6% at Rs.51.15, close to its intra day high at Rs.52. Its 52-week high is at Rs.62.40. Adani Ports is up 3%, hitting a new high at Rs.192.85 and Adani Enterprises has also hit a new 52-week high today (it had hit a new high on Friday too) at Rs.372.50.

This interest in all Adani stocks has kept the stocks consistently not just in the green but in the high since May’13 when four states voted in favor of BJP. Since then the ‘Modi Wave’ has only got stronger and being a strong ‘Modi supporter’ it is assumed that once Modi wins, the Adani group will be an immense beneficiary.

There are no fundamentals ruling this spiking up as FIIs are picking up the stocks merely on expectations that Modi will win. This is so evident from the fact that today, an NGO, Energy Watchdog has challenged CERC’s move to allow compensatory tariff to Tata Power and Adani Power, alleging that this hike gives undue benefits to the power companies. The market has chosen to ignore this fact completely and concentrate only on Modi’s win.