The shares of Adani Ports & Special Economic Zone rose by more than 4% to reach a peak of Rs 857.70 on the NSE last Monday. The market's enthusiasm is driven by the expectation that the company will emerge as a major beneficiary of port infrastructure developments within the upcoming economic corridor, connecting the Middle East, South Asia and ultimately Europe.

This economic corridor includes the creation of crucial rail and port links bridging the Middle East, South Asia and Europe – a development recently hailed by US President Joe Biden as a major achievement at the G20 summit. The announcement was a crucial result of a three-day diplomatic meeting with leaders from the United States, India and Saudi Arabia.

Shares of Adani Ports, India's main port operator, posted gains, as did railway stocks, which saw significant gains of up to 15% during early trading. IRCON, for example, witnessed a notable 15% increase, while IRFC shares rose 10% and reached the upper circuit. RVNL also recorded a solid increase of 9.4% and Titagarh Wagons recorded 5% higher.

Nevertheless, detailed information on project funding and timelines remains elusive. This ambitious initiative involves the construction of railway lines in the Middle East and then connects them to India via port infrastructure, as reported by Reuters. The Biden administration is positioning itself as an alternative partner and investor for developing countries, with the aim of countering China's Belt and Road initiative in global infrastructure development within the G20 framework.

At the same time, the promoter group led by billionaire Gautam Adani has increased its stake in Adani Ports from 63.06% to 65.23%, according to company filings. The group has also increased its stake in the flagship entity, Adani Enterprises, from 69.87% to 71.93%. This strategic move is part of Adani's ongoing efforts to recover from previous setbacks caused by damaging reports.

Notably, this is the second time in less than a month that the promoters have increased their stakes in the flagship company, which incubates new businesses.

Resurgent Trade and Investment acquired nearly 1% of Adani Ports and Special Economic Zone through open market operations, while Emerging Market Investment bought DMCC another 1.2%. Both entities are part of the promoter group.

In the case of Adani Enterprises, the shares were acquired by Kempas Trade and Investment and Infinite Trade and Investment. The filings show that these interests were acquired through open market operations conducted between 14 August and 8 September.

These recent developments closely follow the investment of US-based boutique investment firm GQG Partners in Adani group companies, underlining the growing interest in the Adani conglomerate.