Passive flow boost for RIL
Reliance Industries is expected to see massive inflows from exchange-traded funds (ETFS) in December. This is because its weightage in popular indices such as Nifty, Sensex, and MSCI India will increase after its partly-paid shares get converted into fully-paid shares next month. The second and final call of ~628.5 for its rights issue is due in November. After that, the partly-paid shares will cease to exist. According to Sriram Velayudhan, vice-president – alternative research, Iifl-institutional Equities says the inflows into the stock on account of increase in weightage are estimated at $425 million (about ~3,200 crore). “Looking at the current market momentum, we believe one can look to gradually start building positions in RIL in the run-up to this potential re-balancing event,” he said. Shares of RIL soared nearly 4 per cent on Friday.