GQG Accumulates Stakes in Adani Group Amid Mixed Market: Is the Bullish Wave Back?

GQG Partners, a long-time proponent of the Adani group, has selectively increased its exposure to several key listed entities during the January-March quarter. This accumulation of stakes signals continued conviction from the marquee investor, especially as the group's overall stock performance remains mixed. The move comes even as Foreign Institutional Investors (FIIs) showed signs of caution, while domestic players adjusted their holdings.

Contrasting Investor Sentiment: GQG’s Buying vs. FIIs’ Trimming​

The shareholding data for the March quarter reveals a clear divergence between major investors. GQG marginally hiked its stakes in multiple core holdings. For instance, its stake in Adani Energy Solutions rose from 4.79% to 4.88%, and in Adani Green, it climbed from 4.31% to 4.54%. The group’s flagship entity, Adani Enterprises, also saw a slight bump, with the stake moving from 3.87% to 3.90%.

Conversely, global investors exhibited notable caution. FII ownership dropped sharply in key areas, most visibly in Adani Energy Solutions, where the holding dipped from 13.47% to 12.23%. Adani Enterprises also saw a reduction, falling from 11.64% to 10.8%. This overall trimming aligns with the broader global sentiment regarding Indian stocks over the past year.

LIC and Mutual Funds: Steady Hands Amid Volatility​

While FIIs reduced their positions, Life Insurance Corporation (LIC), one of India's largest domestic institutional investors, largely maintained its long-term approach. LIC’s holdings remained stable in companies like Adani Enterprises, Adani Energy, and Adani Green. The only minor adjustment came at Adani Ports, where the stake decreased slightly from 6.79% to 6.63%.

Mutual funds provided a contrasting narrative of renewed commitment, increasing exposure in several segments. Holdings in ACC rose from 7.84% to 8.01%, and Ambuja Cements recorded a notable jump, moving from 8.15% to 8.92%. Other steady increases were also noted in Adani Power and Adani Green Energy.

Disparity in Performance: Energy Leads While Cement Laggs​

Stock performance across the Adani group in CY26 remains uneven, highlighting sector-specific momentum. Adani Power stands out as a standout performer, delivering gains of around 22.9%, strongly supported by sectoral tailwinds in thermal power. Adani Energy has also shown robust performance, rising approximately 12.5%, while Adani Green recorded a climb of nearly 7%.

However, the performance was not uniform. The cement segment struggled, with ACC declining about 18% and Ambuja Cements dropping roughly 20%, reflecting margin pressures. Furthermore, Adani Enterprises slipped around 6.8%, and NDTV faced a similar decline of about 20%. Adani Ports remained largely flat, signaling a lack of strong directional momentum across the group.

Strategic Viewpoint: Long-Term Bet Against Global Caution​

GQG’s continued accumulation in select Adani stocks suggests a strategic, long-term bet focused on the foundational strength of the group’s infrastructure and energy-linked businesses. This conviction is noteworthy given the mixed market performance.

The contrasting caution displayed by FIIs suggests that global institutional investors are currently in an evaluation phase. They are likely weighing the risk-reward dynamics, especially when considering the Adani group’s capital-intensive expansion plans and the continually evolving regulatory landscape in India.