Capital Group Bets Over $2 Billion On Adani In Shift Away From Reliance

Global investment giant Capital Group has built a more than $2 billion position across key companies of the Adani Group, signalling a sharp shift in foreign investor preference away from Reliance Industries and towards India’s infrastructure and clean energy sectors.

According to reports, the US-based asset manager, which oversees more than $3.3 trillion in assets globally, has increased its exposure to Adani Group firms in recent weeks through open-market purchases. The biggest disclosed transaction came on 5 May, when Capital Group acquired nearly a 2% stake in Adani Ports and Special Economic Zone for ₹7,486 crore, equivalent to around $776 million, according to BSE block deal data.

The fund house has also reportedly accumulated between 1.5% and 2% stakes in Adani Power and Adani Green Energy through market purchases, taking its total recent investment in Adani companies beyond $2 billion.

Investor Confidence In Adani Group Improves

The move reflects improving investor confidence in the Adani Group after a prolonged period of regulatory scrutiny and market volatility. Analysts believe global investors are increasingly viewing Adani companies as major beneficiaries of India’s infrastructure expansion, energy transition and manufacturing growth.

Over the past year, Adani Group stocks have delivered strong returns. Adani Power shares have surged around 94%, while Adani Green Energy and Adani Ports have gained nearly 35% and 25%, respectively. Separately, Adani Enterprises and Adani Ports together added more than ₹1.3 lakh crore in investor wealth in 2026 despite weakness in the broader market.

Capital Group Cuts Reliance Exposure

At the same time, Capital Group has been steadily reducing its holdings in Reliance Industries. Bloomberg data cited in reports showed the investment firm held around 142 million Reliance shares at the end of March 2026, down sharply from nearly 500 million shares six years ago and significantly below its peak holding of 755 million shares in March 2017.

Reliance Industries, long regarded as one of the most favoured Indian stocks among global institutional investors, has seen slower earnings growth and weaker stock performance after years of rapid expansion across telecom, retail and energy businesses. The company’s shares have declined about 8.36% over the past year.

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The renewed interest in Adani stocks also comes after reports that the US Department of Justice recently sought to drop criminal charges against billionaire Gautam Adani, easing a major legal overhang that had weighed on the group’s outlook.

Sources:

The Economic Times

Business Standard

NDTV