RIL’s heft adds to fund managers’ woes as stock makes up 20% of Sensex

Reliance Industries (RIL), whose shares soared over 7 per cent on Tuesday, now accounts for close to a tenth of India’s listed market capitalisation (market cap). The Mukesh Ambani-led firm’s market cap is now nearly a fifth of the combined market cap of the 30-share Sensex index.

The stock has more than doubled from its March lows and quadrupled since December 2016, with a weighting of 14 per cent on the Nifty50 index as of July 31. After the latest jump, RIL’s weighting on the Nifty and the Sensex could have crossed a record 15 per cent and 18 per cent, respectively, according to back-of-the-envelope calculations.