Business


Reliance, Adani gain $1.4b in one day on Modi win



Singapore: Mukesh Ambani, India's richest man, added almost $1 billion to his wealth while Gautam Adani gained $400 million as early vote counting showed Narendra Modi's opposition bloc is set for the biggest election win in 30 years.

Ambani, chairman of Reliance Industries, has added $6 billion to his fortune since September 13, 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 at the close in Mumbai. The wealth of Adani, who runs Gujarat's biggest port, quadrupled to $7.6 billion, from $1.9 billion on September 13.

"We have a new CEO for the country and he is a good CEO," said Samir Arora, founder of Helios Capital Management, 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 BJP and its allies won 332 of 543 seats up for grabs and were leading in seven others, much more than the 272 needed for a majority, according to NDTV.

Platform for growth
Reliance Industries, which operates two refineries at Jamnagar in the western state of Gujarat, gained 3.4 per cent to Rs1,079.25. Adani Enterprises, controlled by 51-year- old Adani, who's a Gujarat native, surged 5.8 per cent to Rs529.7, after rising as much as 17 per cent.

Anil Ambani, the younger brother of Mukesh, added almost $600 million to his net worth yesterday. The younger Ambani, 54, has a fortune of about $8.8 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, 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.

Modi improved access to electricity, built more roads and eased investment approvals after taking power in Gujarat in 2001, providing a platform for growth for companies.

Conducive environment
India's economy grew 4.9 per cent during the fiscal year ended in March, close to the decade-low growth of 4.5 per cent in the previous year, the government estimates. Projects worth $230 billion are awaiting clearance, according to the Cabinet Committee on Investment.

"The environment looks conducive now," Amit Kumar Jain, an investment manager at Samsung Asset Management 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."

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