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 Ltd., has added $6 billion to his fortune since Sept. 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 Sept. 13.
The S&P BSE Sensex advanced 0.9 to a record 24,121.74 at the close in Mumbai, after surging as much as 6.2 percent. Investors are betting that Modi will revive an economy expanding at almost the weakest pace in a decade.
“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 BJP and its allies lead in 334 of 543 seats up for grabs, more than the 272 needed for a majority, according to NDTV.
Reliance Industries, which operates two refineries at Jamnagar in the western state of Gujarat, gained 3.4 percent to 1,079.25 rupees. Adani Enterprises Ltd., controlled by 51-year-old Adani, who’s a Gujarat native, surged 5.8 percent to 529.7 rupees, after rising as much as 17 percent.
Anil Ambani, the younger brother of Mukesh, added almost $600 million to his net worth today. 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 Ltd., India’s third-biggest phone service provider by market value.
Before today’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.
India’s economy grew 4.9 percent during the fiscal year ended in March, close to the decade-low growth of 4.5 percent 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 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.”