As soon as the Sensex touched the 60,000 mark again, Gujarat companies also made big gains. In the two months from June 17 to August 17, the market cap of 16 Gujarat-based companies increased by Rs 6.57 lakh crore.
The BSE Sensex closed at 60,260.13 on Wednesday against a low of 51,360.42 on June 17, up 17.3% in two months. This was the seventh consecutive day rise in the BSE Sensex.
Adani Group gained the maximum wealth rise during the period. In order of gains were, Adani Transmission (Rs 1.75 lakh crore), Adani Total Gas (Rs 1.45 lakh crore), Adani Enterprises (Rs 1.12 lakh crore), Adani Green Energy (Rs 84,913 crore), Adani Power (Rs 45,743 crore) and Adani Ports and Special Economic Zone (Rs 32,762 crore).
Besides these, pharma giants Sun Pharmaceuticals and Zydus Lifesciences also posted profits of Rs 30,430 crore and Rs 6,090 crore, respectively. State-owned Gujarat Fluorochemicals Ltd also posted a profit of Rs 11,477 crore as its stock rose in two months.
“Companies in Gujarat have done well in the last two months, reflecting good earnings and strong projections for the future. So, these companies have lured investors. Moreover, many of these corporations enjoy monopolies in industrial areas. Having proved its financial performance, there has been a sharp increase in the share prices of Adani Group companies,” explained a stock broker in Ahmedabad.
According to financial analysts, the market influx is driven by both local and foreign investors. “Continued inflow from FPIs was the main driving force behind the rally in the domestic market,” said an analyst who did not wish to be named. This trend has been mainly attributed to the resilience exhibited by the Indian economy, even as inflation is affecting many developed markets such as Europe and the US.
A lot has changed in the Indian capital markets in the last six months. FIIs were continuously selling in the Indian stock market from October 2021 to June 2022 . Against heavy outflows in June this year, July 2022 saw an inflow of $600 million. It rose to $2,835 million in August. Moreover, prices of key commodities have softened from peak levels, especially crude oil which is now trading around $90 a barrel.
Also Read: Adani Becomes World’s Fourth Richest Person, Surpasses Bill Gates In The Forbes List
