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Adani group stocks significantly recovered, surging by up to 6% in Wednesday's trade after experiencing a sharp decline of as much as 15% in early trading. ACC, Ambuja Cement, Adani Green Energy, and Adani Ports surged between 3-6%.In early Wednesday trade, Adani Energy Solutions declined 15%, while Adani Power fell 12%. Adani Enterprises, Adani Ports, and Adani Total Gas also dropped 6-9%.During the previous session, all 10 Adani group companies witnessed declines as investors reacted to the Lok Sabha election results with disappointment. Adani Ports notably experienced a steep decline of 20% on Tuesday. Shares of Ambuja Cements, Adani Enterprises, Adani Energy Solutions, Adani Green, NDTV, ACC, Adani Total Gas, and Adani Gas fell between 12% and 18%, collectively leading to a market capitalization loss of around Rs 3 lakh crore for all 10 Adani stocks.On Monday, however, Adani stocks were among the top gainers as exit polls predicted that PM Narendra Modi would win the elections with a thumping majority, going well above 350 seats. Following the rally, Adani stocks erased all Hindenburg-era losses, with their market capitalization nearing the Rs 20 lakh crore mark once again after a gap of 16 months.In FY24, Adani Group's profit after tax (PAT) jumped 55% to Rs 30,768 crore, while its EBITDA grew 40% year-on-year to Rs 660 billion.At the end of FY24, the group's net debt remained stable at Rs 2.2 trillion compared to Rs 2.3 trillion in the previous year. Net debt/EBITDA improved materially to 3.3x FY24 EBITDA vs. 5x YoY. Adani Ports and Adani Power saw a drop in net debt in FY24. An increase in leverage for Adani Enterprises and Adani Green was due to new capex projects undertaken by the companies, according to Jefferies.The global brokerage has buy calls on Adani Enterprises (target price Rs 3,800), Adani Ports (target price Rs 1,640), and Adani Energy Solutions (target price Rs 1,365).(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Sectoral/thematic mutual funds have delivered up to 380% absolute return in the last five years of Modi-led government. There were around 108 sectoral/thematic funds in the market in the said time period.Infrastructure funds led the return chart. Out of top 10 sectoral/thematic funds, eight schemes were from the infrastructure sector. Quant Infrastructure Fund, the topper in the list, gave an absolute return of 379.75% in the last five years of the Modi government. Invesco India Infrastructure Fund delivered 282.53% in the said period.The stellar performance by the infrastructure funds was mainly because “the performance of infrastructure funds in India since May 2019 can be attributed to several strategic initiatives and policies implemented by the government. Firstly, there has been a clear emphasis on infrastructure development, evident through flagship projects like Bharatmala, Sagarmala, the Smart Cities Mission and Har Ghar Jal Jeevan Mission etc.,” said Sagar Shinde, VP Research, Fisdom.He added, “The budget outlay for key infrastructure sectors has witnessed a healthy growth of approximately 12% CAGR since 2019. Notably, allocations towards highways, railways, and water have experienced a notable 20% CAGR during this period. Overall, this multi-faceted approach has created a conducive environment for infrastructure funds, driving their performance since May 2019.”Invesco India PSU Equity Fund, a PSU fund, offered 281.10% absolute return in the last five years of the Modi government. Nippon India Power & Infra Fund delivered 255.43% absolute return.Manufacturing sector based funds also made it to the list of top performing sectoral/thematic funds. ICICI Prudential Manufacturing Fund offered an absolute return of 229.45% Mirae Asset Healthcare Fund and SBI Healthcare Opp Fund gave absolute returns of 212.90% and 205.94% respectively in the last five years of the Modi government. SBI Technology Opp Fund and SBI Magnum Comma Fund ensured 176.27% and 17,542% absolute returns respectively. Aditya Birla SL Mfg. Equity Fund and Aditya Birla SL India GenNext Fund delivered 138.48% and 136.89% absolute returns respectively. Out of 108 sectoral/thematic funds in the market in the said period, 72 sectoral/thematic funds offered three digit returns, 35 funds gave double-digit returns and only one fund gave negative return. The only fund to offer negative returns was HSBC Brazil Fund. This international fund lost around 12.96% in the last five years of the Modi-led government. Looking at the past performance, are you wondering which sectors/themes will perform better and will offer mutual fund investors the best returns in a possible Modi 3.0 government?“We expect public sector undertakings, telecom, domestic cyclicals and infrastructure-related segments of capital goods, basic materials and power to do well,” hints Shinde.“Infrastructure has been a major focus for the Modi government in the last 10 years. We will see further impetus and focus on the same. Further, the defence sector is likely to do well as unfortunately, India does not have friendly neighbours and the current government has shown in the past to retaliate as and when prompted to do so. India believes in non-violence, but rightfully not so, when instigated and when being taken advantage of. The PSU stocks are also likely to do well,” recommends Rajesh Minocha, a Certified Financial Planner (CFP), founder of Financial Radiance.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and twitter handle.

Railway shares have tumbled up to 33% in the last two days as a narrow win for Prime Minister Narendra Modi's alliance raised concerns about policy continuity.Shares of Titagarh Rail Systems tumbled nearly 33%, while Ircon International declined by over 26%. Meanwhile, RailTel Corporation and IRCTC also fell by over 19% in the past two days. RITES, IRFC, RVNL, Texmaco Rail Systems, and Jupiter Wagons saw declines of between 18-23%. In Wednesday's trade, railway stocks fell by up to 17%.According to the election commission, the Bharatiya Janata Party (BJP) won 240 seats, falling short of the 272 seats needed for a simple majority in the 543-member lower house of parliament."Despite the reduced majority, we expect the policy agenda of Modi 2.0 (investment-led growth, capex, infrastructure creation, manufacturing, etc.) to continue, although with some tweaks," said the brokerage firm Motilal Oswal.Regarding further sectoral performance, Motilal Oswal added, "Sectors with over-heated valuations and recent sharp outperformance, such as Industrials, Railways, Defense, and PSUs, may see more moderation in valuations before they become attractive again from a risk-reward perspective."Other PSU stocks like Cochin Shipyard and Bharat Dynamics also fell by 10% as the BSE PSU index fell by 4%. Stocks like NBCC, HUDCO, Indian Bank, and REC witnessed a decline of more than 5%.Shares of NTPC, CONCOR, Hindustan Copper, GIC, Central Bank of India, NMDC, Powergrid, PFC, BEL, PNB, UCO Bank, Union Bank of India, HAL, BHEL, and SJVN, among others, saw a fall of more than 3%.Despite the fall, analysts remain positive on PSUs as the BJP is set to comeback.Manish Sonthalia, Chief Investment Officer at Emkay Investment Managers, expects BFSI to do well along with PSUs and industrials. “BFSI has led the earnings growth and seen a correction in valuation. Investment-related themes will come into play with power capex building up in the next 3 to 5 years. We are re-rating public sector units as some of the government entities will have an advantage in sectors such as defence, oil marketing companies, and power financers,” said Sonthalia.Quant Mutual Fund's Chief Investment Officer (CIO) feels Modi coming back at the helm could be the endorsement of the policies of the previous government, which means that infra, manufacturing, and PSU as a theme will continue.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)