Los Angeles-based investment firm The Capital Group, managing an estimated $3 trillion in assets, has reportedly made substantial new investments totaling $2 billion across three Adani Group companies. This strategic move, which includes acquiring stakes in Adani Power Ltd, Adani Green Energy Ltd, and Adani Ports & Special Economic Zone Ltd (Adani Ports), signals a notable shift in foreign investor preference within the Indian market. Concurrently, The Capital Group has significantly trimmed its long-standing holdings in Mukesh Ambani's flagship, Reliance Industries.
Adani Group Emerges as Preferred Investment
According to reports, The Capital Group has accumulated between 1.5-2 percent stakes in both Adani Power and Adani Green Energy through recent market purchases. Publicly available BSE data further indicates that Capital Group International All Countries Equity Trust and Capital Income Builder acquired millions of shares in Adani Ports at Rs 1,632.45 apiece on May 4, 2026.
This substantial investment follows a period of strong performance for the Adani firms. Adani Power has seen a 48 percent climb in 2026, while Adani Green Energy and Adani Ports have risen by 34 percent and 21 percent, respectively, during the same period.
Strategic Rationale and Reliance Holdings
The Capital Group's pivot towards Adani companies is viewed as a strategic bet on India's next phase of economic expansion. Analysts suggest Adani Group firms are seen as leveraged plays on the nation's critical infrastructure development, ambitious energy transition goals, and burgeoning manufacturing push.
Conversely, The Capital Group's exposure to Reliance Industries has seen a sharp decline over recent years. From a peak of 75.50 crore RIL shares in March 2017 and approximately 50 crore shares six years ago, the fund manager held 14.2 crore RIL shares by the end of March 2026. This reduction aligns with a period where Reliance Industries' earnings growth and stock performance have reportedly moderated after years of rapid expansion across its telecommunications, retail, and energy sectors.
Recent Positive Developments for Adani Group
The timing of these Adani investments coincides with several positive developments for the conglomerate. The group recently reached a settlement with the US Treasury Department's Office of Foreign Assets Control (OFAC) regarding alleged sanctions violations related to Iran-linked LPG transactions. Adani has offered to pay $275 million without admitting to the allegations.
Furthermore, Adani Green Energy confirmed that the US Securities and Exchange Commission (SEC), along with Gautam Adani and Sagar Adani, filed a request for entry of final judgment concerning a civil complaint previously filed in the United States District Court for the Eastern District of New York.