Adani Stocks Surge Amid Anticipation of Modi’s Third Term

Motilal Oswal Securities anticipates that Modi’s policy agenda in his third term will continue to emphasize investment-led growth, capex, infrastructure development, and manufacturing, albeit with some modifications.

Adani group shares, including Adani Green Energy Ltd, Adani Enterprises Ltd, and Adani Ports, surged up to 12 percent on Wednesday following a previous session’s downturn. Brokerages predict that the next government under Prime Minister Narendra Modi will maintain support for investment-led growth and capex.

On a day when the Sensex climbed over 3 percent, Adani Enterprises Ltd surged 6.35 percent to Rs 3,126.50, Adani Ports jumped 8 percent to Rs 3,126.50, Adani Green Energy rose 11.81 percent to Rs 1,840.90, and Adani Total Gas added 2.03 percent to Rs 926.90. Additionally, Ambuja Cements and ACC increased by 5-8 percent.

Modi, who submitted his resignation along with the Council of Ministers to President Droupadi Murmu today, is expected to be sworn in as Prime Minister for a third consecutive term on June 8 evening, sources informed India Today. The NDA surpassed the majority mark with 292 seats, though the BJP fell short of a majority on its own. If the NDA forms the government, Modi will be the second leader after former Prime Minister Jawaharlal Nehru to secure a third term.

Despite the reduced majority, Motilal Oswal Securities expects Modi’s policy agenda to continue, with an emphasis on investment-led growth, capex, infrastructure creation, and manufacturing.

“While the broad thrust on capex and investment-led growth continues, the agenda going forward could also include measures for reviving consumption at the bottom-of-the-pyramid, some relief in taxation measures, and rationalization in the GST structure. The government has some leeway with the higher-than-expected RBI dividend and recent moderation in Brent crude prices,” Motilal Oswal Securities noted.

Kotak also predicts continued focus on energy transition and infrastructure development. The government has already implemented significant reforms to incentivize private investments, with execution now being more critical.