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IIFL Alternative Research expects the weightage of Reliance Industries to go up in key indices such as MSCI India, NSE’s Nifty-50 and the BSE Sensex in December, after the shares become fully paid-up.
“With RIL’s last payment towards its partly paid up rights issue due in November (second and final call of ₹628.50), the stock should see a weight up in select indices. Hence we recommend a pre-positional long in RIL and hedge this long position with Nifty,” it added. “Our estimates assess inflows of $425 million” for Reliance Industries stock, it added.
Currently, RIL carries a weight of close to 13 per cent in Sensex and 11 per cent in Nifty. As of September 30, RIL weight on MSCI India index was 10.09 per cent.
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