ADAG Stocks Rally on Reliance Capital’s Acquisition

Shares of Reliance Power, Reliance Infrastructure, and other ADAG group companies witnessed a sharp surge on March 27, 2025, continuing their winning streak for the second consecutive day. This rally came despite a broadly negative market sentiment, fueled by the successful acquisition of Reliance Capital by IIHL for ₹9,650 crore.

Market experts highlighted that the completion of this long-pending acquisition process has boosted investor confidence in Anil Ambani’s group companies, leading to strong buying interest in ADAG stocks.

Reliance Power and Reliance Infra Lead the Surge

Among individual stocks:

• Reliance Power surged 11% intraday, reflecting increased optimism.

• Reliance Infrastructure jumped 10%, continuing its recent upward momentum.

• Reliance Capital gained 2%, benefiting from the clarity on its acquisition.

Stock Performance Trends of ADAG Companies

ADAG stocks have witnessed significant volatility over the past year but have delivered multi-bagger returns to long-term investors.

Reliance Power (RPower) Stock Performance

• Surged 13.35% in the last month, despite a 12% decline year-to-date (YTD).

• Over the past one year, the stock has gained 43%, indicating sustained investor interest.

• In the last two years, Reliance Power has given a massive 203% return, rewarding patient investors.

Reliance Infrastructure (RInfra) Stock Performance

• Jumped 14% in the last month but is down 21% YTD.

• The company remains a major stakeholder in Reliance Power and has seen a 134% return in the past three years, making it another multi-bagger stock from the ADAG group.

Why Did ADAG Stocks Surge Today?

According to Sugandha Sachdeva, Founder of SS WealthStreet, the surge in Reliance Power and Reliance Infrastructure stocks was primarily driven by:

• The successful completion of the ₹9,650 crore Reliance Capital acquisition by IIHL, which took nearly three years to finalize.

• Clearing of outstanding debts related to the acquisition, reducing financial stress on ADAG companies.

• IIHL taking official control and holding its first board meeting, signaling stability and growth potential for the group's businesses.

The surge was also supported by high trading volumes, indicating strong investor interest and renewed optimism in ADAG group stocks.

Broader Stock Market Performance

Despite the rally in ADAG stocks, the overall stock market was under pressure, with major indices declining due to profit-booking ahead of key global developments.

Sensex and Nifty Performance

• The Sensex tanked 728.69 points (0.93%), closing at 77,288.50, with 25 out of 30 stocks closing in the red.

• The Nifty 50 dropped 181.80 points (0.77%), settling at 23,486.85.

• Banking and IT stocks faced heavy selling pressure ahead of the monthly derivatives expiry and concerns over potential US tariff announcements next week.

Market Sentiment and Recent Trends

• The Sensex had gained 4,188.28 points (5.67%) in the last seven sessions before today's fall.

• Similarly, the Nifty surged 1,271.45 points (5.67%) over the same period, erasing its YTD losses.

• Mid-cap and small-cap stocks saw a second consecutive day of decline, after a strong six-day rally of 9-10%.

Outlook for ADAG Stocks

The positive momentum in Reliance Power, Reliance Infrastructure, and Reliance Capital could continue if:

• Investor confidence remains strong after IIHL's acquisition of Reliance Capital.

• The group continues to strengthen its financial position and reduce debt concerns.

• Broader market conditions support further upside in infrastructure and power sector stocks.

While ADAG stocks remain highly volatile, the latest rally signals renewed optimism in the group’s revival prospects. Investors will closely watch further developments related to IIHL's business strategies and financial restructuring efforts in Reliance Capital and other group companies.

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