Global investment giant Capital Group is sharply increasing its investments in Adani Group companies while steadily reducing exposure to Reliance Industries, reflecting a major shift in how foreign investors are positioning themselves for India’s next phase of economic growth.
According to people familiar with the matter, the Los Angeles-based investment firm has acquired stakes worth more than $2 billion across multiple Adani Group companies in recent weeks.
The move signals growing confidence among global institutional investors in sectors linked to infrastructure, clean energy and manufacturing rather than purely consumer-led growth stories.
Capital Group Increases Stakes Across Adani Companies
One of the biggest transactions took place on May 5 when Capital Group purchased nearly a 2% stake in Adani Ports and Special Economic Zone through open-market transactions worth approximately ₹74.86 billion ($776 million), according to BSE block-deal data.
Sources also indicated that Capital Group accumulated between 1.5% and 2% stakes in Adani Power and Adani Green Energy through market purchases.
The investment manager oversees more than $3.3 trillion in assets globally, making it one of the world’s largest institutional investors.
Industry experts believe the firm’s increasing allocation toward Adani Group reflects rising investor interest in businesses tied directly to India’s infrastructure development and energy transition story.
Adani Stocks Become Infrastructure And Energy Bets
Global investors are increasingly viewing Adani Group companies as leveraged plays on India’s long-term industrial expansion.
The conglomerate has built large-scale businesses across ports, logistics, renewable energy, thermal power, transmission, airports and industrial infrastructure.
As India accelerates manufacturing growth, renewable energy expansion and infrastructure development, investors are searching for companies positioned to benefit directly from these structural trends.
Analysts say the shift has become more visible at a time when some global investors have become cautious on markets lacking strong exposure to artificial intelligence-related themes.
In that environment, Adani Group companies are increasingly emerging as alternative long-term infrastructure and energy transition bets.
Strong Stock Performance Boosts Investor Confidence
The growing interest from foreign investors has coincided with strong market performance across several Adani companies.
Over the past year, shares of Adani Power surged nearly 94%, while Adani Green Energy gained around 35% and Adani Ports advanced roughly 25%.
Market experts believe the sharp rally reflects improving investor sentiment after months of volatility and regulatory uncertainty surrounding the group.
The recovery in confidence accelerated after reports indicated that the US Department of Justice recently sought to drop criminal charges against Gautam Adani.
The development removed a significant legal overhang that had weighed on the group’s companies and raised concerns among global investors.
Industry observers say the resolution of major regulatory risks has helped restore institutional confidence in the conglomerate’s long-term business outlook.
Reliance Exposure Continues To Decline
At the same time, Capital Group has steadily reduced its holdings in Reliance Industries over the last several years.
According to Bloomberg compiled data, the firm held around 142 million shares in Reliance at the end of March, compared to approximately 500 million shares six years ago and a peak holding of 755 million shares in March 2017.
Although Reliance remains one of India’s most widely owned and closely tracked companies among foreign institutional investors, its growth trajectory has moderated after years of aggressive expansion across telecom, retail and energy businesses.
Reliance Industries shares have declined around 8.36% over the past year.
Investor Preferences In India Are Evolving
Market analysts believe the shift from Reliance toward Adani stocks reflects broader changes in investor priorities within India.
Foreign investors are increasingly looking for exposure to infrastructure creation, manufacturing expansion, logistics networks and clean energy development as India pushes toward becoming a global industrial and energy hub.
The growing interest in Adani companies also highlights how India’s investment narrative is gradually evolving beyond consumption and digital services toward infrastructure-led economic expansion.
As global capital continues rotating toward energy transition and industrial themes, analysts expect competition among India’s largest conglomerates for institutional investor attention to intensify even further.
