In a major reshuffle of foreign investment priorities in India, Capital Group has built a massive $2 billion bet on the Adani Group while steadily trimming its exposure to Reliance Industries. The Los Angeles-based asset management giant, which oversees more than $3.3 trillion globally, recently acquired substantial stakes across three key Adani entities, including a nearly 2% stake in Adani Ports and Special Economic Zone for $776 million. Capital Group has also accumulated estimated stakes between 1.5% and 2% in Adani Power and Adani Green Energy through open-market transactions.
This strategic pivot reflects a broader transition among international money managers toward the next phase of India’s economic expansion. As the market searches for growth outside of global artificial intelligence plays, Adani’s companies are increasingly viewed as high-leverage vehicles driving India’s massive infrastructure development, energy transition, and manufacturing push. Over the past year, Adani Power, Adani Green, and Adani Ports shares have surged by 94%, 35%, and 25%, respectively. Furthermore, investor confidence has been significantly bolstered following reports that the US Justice Department sought to drop criminal charges against billionaire founder Gautam Adani, effectively clearing a major regulatory overhang.
Conversely, Capital Group’s long-term exposure to Reliance Industries has declined sharply. The firm’s holdings dropped to 142 million shares by the end of March, down from a peak of 755 million in 2017. While Reliance remains a cornerstone of the Indian market, its earnings growth and stock performance have moderated after years of rapid expansion across retail, telecommunications, and energy. With Reliance shares down 8.36% over the past year, international funds are visibly recalibrating their portfolios toward Adani’s fast-growing infrastructure and green energy assets.
