Ambani, Adani gain $1.5 billion in a day on Narendra Modi victory2 min read . Updated: 16 May 2014, 10:08 PM IST
BSE Sensex advanced as much as 6.2% on Friday to a record 25,375.63
Singapore: Mukesh Ambani, India’s richest man, added almost $1 billion to his wealth while Gautam Adani gained $600 million as early vote counting showed Narendra Modi’s opposition bloc may form a majority in parliament.
Ambani, chairman of Reliance Industries Ltd, has added $6 billion to his fortune since 13 September, when Modi, the chief minister of India’s western state of Gujarat, was named prime ministerial candidate, according to the Bloomberg Billionaires Index. Ambani, 57, has a net worth of $25.8 billion as of 1:57 pm in Mumbai. The wealth of Adani, who runs Gujarat’s biggest port, quadrupled to $7.8 billion, from $1.9 billion on 13 September.
The S&P BSE Sensex advanced as much as 6.2% on Friday to a record 25,375.63, poised for the biggest increase since the last national election in May 2009. Investors are betting that Modi will revive an economy growing at almost the weakest pace in a decade. The measure rose 0.90% to close at 24,121.74 points.
“We have a new CEO for the country and he is a good CEO," said Samir Arora, founder of Helios Capital Management Pte., a Singapore-based hedge fund. “There are so many low hanging fruits in railways, power, that can be worked on and help boost the economy. Modi has the track record to implement these changes."
The Bharatiya Janata Party and its allies lead in 332 of 543 seats where results are available, enough for a majority, according to NDTV.
Reliance Industries, which operates two refineries at Jamnagar in the western state of Gujarat, gained 3% to ₹ 1,080.50. Adani Enterprises Ltd, controlled by 51-year-old Adani, who’s a Gujarat native, closed 6.06% up at ₹ 530.90.
Anil Ambani, the younger brother of Mukesh, added almost $500 million to his net worth on Friday. The younger Ambani, 54, has a fortune of about $8.7 billion and is the nation’s eighth- richest man, according to the Bloomberg Billionaires Index. The majority of his wealth is derived from stakes in publicly traded companies, including Reliance Communications Ltd, India’s third-biggest phone service provider by market value.
Before Friday’s gain, the 10 richest Indian billionaires added $12.2 billion since the start of the year, according to the Bloomberg Billionaires Index.
The environment looks conducive now, Amit Kumar Jain, an investment manager at Samsung Asset Management Ltd. in Hong Kong, said in an e-mailed response to a query. There are lots of projects that were stuck or not moving, investors and companies will hope for clarity on these especially on resource allocations and infrastructure. BLOOMBERG