The Capital Group, a leading investment management firm based in Los Angeles, has recently shifted its investment strategy by significantly increasing its stakes in Adani Group companies, totaling over $2 billion. This shift comes as the firm has been reducing its holdings in Reliance Industries Ltd., one of India's largest conglomerates. Notably, on May 5, Capital Group acquired nearly a 2% stake in Adani Ports and Special Economic Zone Ltd. for approximately ₹74.86 billion ($776 million). Additionally, the firm has accumulated stakes ranging from 1.5% to 2% in Adani Power Ltd. and Adani Green Energy Ltd. The rising interest in Adani stocks is attributed to their perceived potential in India's infrastructure and energy transition, particularly as Adani shares have surged by 94% for Adani Power, 35% for Adani Green, and 25% for Adani Ports over the past year. This pivot also signifies a recovery in investor confidence following past regulatory challenges faced by Gautam Adani, the group's founder. Meanwhile, Capital Group's exposure to Reliance has sharply declined from 755 million shares in March 2017 to about 142 million shares as of March 2023, reflecting a broader trend of investor caution regarding Reliance's recent performance.