Indian billionaire Gautam Adani’s ascent to rank as the world’s second-richest person has helped the country’s stocks jump to world-beating levels and boost their dominance in emerging market stocks.
Eight firms controlled by Adani’s port-to-power group, including the recent cement acquisition, have contributed to more than a fifth of the 109-member MSCI India Index’s jump since the end of June, as data compiled by Bloomberg show . The index has outperformed Asian and emerging market peers with a jump of 12% during this period.
Eight of Adani’s stocks are also part of the MSCI Asia Pacific Index and the MSCI Emerging Markets Index, in which only China is overtaken by India, showing the growing influence of the tycoon’s companies. Equity gains have helped Adani’s wealth surpass Bill Gates and France’s Bernard Arnault over the past two months, making him the first Asian to break into the top echelons of the Bloomberg Billionaires Index.
The jump in the market capitalization of the MSCI India Index during the current quarter has also been largely dependent on Adani firms, which have contributed more than a third of the growth, as per data compiled by Bloomberg show. The gauge’s valuation hit a record high of Rs 186 trillion ($2.34 trillion) early last week before easing amid a global equity sell-off.
Edible oil and fast-moving consumer-goods maker Adani Wilmar Ltd., which had one of the best-performing IPOs in India last year, is the only Adani Group firm not yet featured in the MSCI India Index. Shares in India rose on Monday with the benchmark Sensex gaining 0.7% in Mumbai trade.
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