In a significant move by foreign investors, Capital Group has boosted its investments in Adani Group companies while reducing its stakes in Reliance Industries Ltd (RIL). The US-based firm has reportedly acquired over $2 billion worth of shares in three Adani Group entities – Adani Ports, Adani Power, and Adani Green Energy. Capital Group recently purchased close to a 2% stake in Adani Ports and Special Economic Zone Ltd. for 74.86 billion rupees through open-market transactions.
The shift towards Adani stocks indicates a rebound in investor confidence following regulatory scrutiny and market fluctuations. The decision by the US to dismiss charges against Adani Enterprises Ltd has been hailed as a significant win for the conglomerate and the industry, fostering optimism among investors and facilitating global capital raising. Meanwhile, Capital Group’s exposure to Reliance has dwindled notably over the past few years, with a substantial decrease in its holdings.
According to reports, Capital Group’s holdings in Reliance Industries have decreased significantly, from about 500 million shares six years ago to approximately 142 million shares currently. This marks a substantial decline from a peak of 755 million shares in March 2017. Additionally, Reliance Industries’ shares have experienced an 8.36% decline over the past year, as per the report.
