Reliance Industries to see upward revision in Sensex, Nifty weighting

The weighting of oil-to-telecom conglomerate Reliance Industries (RIL) is likely to increase in the benchmark S&P BSE Sensex from December 29 to result in additional inflows of $75 million, according to Edelweiss Alternative Research.

The stock’s weighting may rise by 0.68 percentage points (pp) to 12.5 per cent in the Sensex, from 11.8 per cent at present. Nifty indices may do a weighting rebalancing on December 30, leading to estimated inflows of about $170 million, according to the research firm. The total cumulative inflow for RIL in Sensex and Nifty is expected to be $245 million.

The research has listed five stocks: Infosys, HDFC Bank, ICICI Bank, HDFC and TCS – which may see a downward revision in Sensex weighting.

IT majors Infosys and TCS may see outflows of $9 million and $5 million respectively after a cut in weighting by 0.08 pp and 0.05 pp.

HDFC Bank and ICICI Bank, on the other hand, may see outflows of $8 million and $7 million respectively after a cut in weighting by 0.08 pp and 0.06 pp.