The Capital Group, a prominent global investment management firm, has significantly escalated its investments in Adani Group companies while simultaneously reducing its holdings in Reliance Industries, indicating a shift in foreign investor preferences among India’s largest conglomerates.
Recently, the Los Angeles-based asset manager has amassed over $2 billion in stakes across three Adani Group companies, as per information from sources familiar with the transactions. Notably, on May 5, the Capital Group acquired nearly a 2% stake in Adani Ports and Special Economic Zone for 74.86 billion rupees (approximately $776 million) through open-market transactions, according to BSE block-deal data.
The firm, managing assets exceeding $3.3 trillion globally, has also secured between 1.5% and 2% stakes in Adani Power and Adani Green Energy via market purchases. Sources indicated that they wished to remain anonymous due to the confidentiality of the information.
In light of the current market, which has become less appealing to some investors due to a lack of companies linked to the global artificial intelligence boom, Adani companies are increasingly recognized as valuable leveraged plays on India’s infrastructure development and energy transition. This transition is seen as part of a broader strategy to capitalize on India’s economic growth phase.
Shares in Adani Power, Adani Green, and Adani Ports have seen significant appreciation over the past year, rising by 94%, 35%, and 25%, respectively.
A spokesperson for Capital Group declined to provide specifics regarding individual stocks or shareholdings, while a representative from Adani Group did not respond to requests for comment.
The movement towards investing in Adani stocks suggests a restoration of investor confidence following a period of regulatory scrutiny and market fluctuations. The recent decision by the U.S. Justice Department to drop criminal charges against Gautam Adani has removed a substantial overhang, thereby alleviating legal risks that previously loomed over his extensive ports-to-power conglomerate.
Conversely, Capital Group’s exposure to Reliance Industries has significantly declined in recent years. At the end of March, the firm held approximately 142 million shares in Reliance, a notable decrease from about 500 million shares six years earlier and a peak of 755 million in March 2017, based on data compiled by Bloomberg.
Although Reliance remains one of the most widely held and closely monitored stocks among global funds, its earnings growth and stock performance have tempered following years of rapid expansion within telecommunications, retail, and energy sectors. Over the last year, shares of Reliance Industries have seen a decline of 8.36%.
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Published on May 22, 2026.
