Euphoria is running high among stock investors over Bhartiya Janata Party (BJP)’s prime ministerial candidate Narendra Modi possibly forming the next government. Adani Group’s all three listed firms witnessed heavy buying on the stock exchanges on Friday with analysts calling it an FII’s optimism over BJP’s bright prospects of coming to power.

Adani Group’s power arm, Adani Power Limited gained over 17 per cent on the Bombay Stock Exchange (BSE) to close at Rs 48.70. APL had hit a 52-week high of Rs 62.40 during May 2013.

The parent, Adani Enterprises Ltd (AEL) was up by 7.5 per cent to end at Rs 356.45 after touching its 52-week high of Rs 357.20 during intraday on Friday. Adani Ports and Special Economic Zone (APSEZ) gained over 3.5 per cent to close at Rs 186.25 on BSE. APSEZ had touched 52-week high of Rs 190.90 during March 2014.

Meanwhile, the benchmark index Sensex on Friday surged to a new high of 22,342 points up 129 points from previous close.

“There is no overnight change in the group’s fundamentals. Even if the BJP forms the government under Narendra Modi, things are not going to change immediately for the Adani Group. This is only a euphoric buying by FIIs due to Modi wave,” said Kishor Ostwal, CMD, CNI Research Ltd.

Last year, at least two leading multinational brokerage including Japan’s Nomura and US-based Goldman Sachs had expressed optimism about BJP forming the next government under Mr Modi.

However, leading ratings agency, Moody’s Analytics has recently stated that event if Mr Modi becomes the prime minister, there less likelihood of the economy to accelerate in 2014 as real economy continues to be in doldrums.

Apart from Adani, a few other leading state-based companies have outperformed Sensex with heavy gains on Friday. These include Gujarat Pipavav Port (up 4.6%), Welspun India Ltd (up 3.7%), Torrent Power (up 3%), Cadila Healthcare (up 1.76%).

While most investors are riding on BJP’s fair chances of winning the elections, recent improvement in economic factors such as inflation, rupee appreciation have boosted confidence for select companies.

“Modi-wave is a significant factor for the upside in select stocks. But that is not the only factor. With rupee gaining against the dollar, all those companies engaged in imports would be positively impacted,” said S Ranganathan, head of research, LKP Shares.

Echoing similar sentiments, Madhumita Ghosh, research head of Delhi-based brokerage Equity Augment Enterprises expressed confidence of market going up further. “Inflation is coming to normal, rupee has gained, interest rates too are not likely to go up any further. Hence, we see further upside in the benchmark index till the elections are over.”

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