Shares of Adani Group Surge as Market Reaches All-Time High
Summary: Shares of Adani Group companies surged, driving the Sensex and Nifty to record closing highs. The Sensex rose by 1,618 points to 76,693, and the Nifty increased by 468 points to 23,290. This market rally was bolstered by the Reserve Bank of India (RBI) revising the GDP growth projection for 2024-25 upwards to 7.2 percent from the earlier 7 percent. Adani Group’s NDTV shares climbed 4 percent, and other significant gainers included Mahindra and Mahindra, and Wipro, both up over 5 percent. The RBI kept key interest rates unchanged, maintaining a repo rate of 6.50 percent to focus on inflation amid strong economic growth. This stable economic outlook has fueled investor confidence and market optimism.
New Delhi: Stocks of Adani Group companies outperformed the market today as benchmark equity indices Sensex and Nifty surged over 2 percent to close at record highs. The Reserve Bank of India (RBI) also revised the gross domestic product (GDP) growth projection upwards to 7.2 percent for 2024-25, up from the earlier 7 percent estimate.
Shares of NDTV, an Adani Group company, climbed 4 percent. The Sensex gained 1,618 points, ending at 76,693—a record high during intraday trade—while the Nifty rose by 468 points to settle at 23,290.
The market rally was broad-based, with all sectoral indices performing well. Analysts attributed the market’s optimism to perceived stability and positive economic signals. Notably, stocks of Mahindra and Mahindra and Wipro each gained over 5 percent.
Adani Group firms had already seen a strong recovery on Wednesday, led by Adani Green Energy and Adani Ports, as stock markets rebounded from losses incurred on Tuesday, the day votes were counted for the Lok Sabha election.
The RBI, in its policy meeting, left key interest rates unchanged, maintaining a focus on inflation amidst robust economic growth. This decision is likely to give the new Modi government room to implement further reforms. “The Monetary Policy Committee, comprising three RBI members and three external members, kept the repo rate unchanged at 6.50 percent for an eighth straight policy meeting and stuck to its relatively hawkish stance of ‘withdrawal of accommodation,'” RBI Governor Shaktikanta Das said in a statement.
The combination of positive economic projections and a stable interest rate environment has contributed to the buoyant market sentiment, with investors showing renewed confidence in the Indian economy’s growth trajectory.
