Adani Group stocks volatile on Modi-led coalition's slim victory

Opposition leader says fates of prime minister and conglomerate are 'correlated'

Uncertainties over Indian Prime Minister Narendra Modi's capability to execute policies amid the new balance of power in the ruling coalition may have a lasting impact on the markets for some time to come. (Photo by Ken Kobayashi)

SAYAN CHAKRABORTY, Nikkei staff writer

June 5, 2024 20:49 JST

Updated on June 5, 2024 22:26 JST

BENGALURU -- Indian election results showing an underwhelming victory for Prime Minister Narendra Modi's coalition sparked volatile trading in shares of companies owned by Gautam Adani, prompting an opposition leader to claim that the fates of the nation's leader and its most prominent billionaire were "correlated."

Adani Group shares rose on Wednesday as partners in Modi's ruling coalition reaffirmed their support. Adani Enterprises and Adani Power were up 6% and 0.5%. Adani Ports and Special Economic Zone rose 8%, while Adani Total Gas and Adani Green Energy were up 3% and 11%.