Reliance's rise to the top 🚀

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Hey there!

 

The markets ended the week with modest gains. This is believed to be on account of markets shrugging off concerns over border disputes with China as Indian and Chinese foreign ministers met in Moscow and agreed to take steps to restore "peace and tranquillity". Another reason could be that the index heavy-weight Reliance's stock price shot up by more than 11% in a single week, which might have resulted in broader market indices also ending in green.

 

Anyway, before getting to the market updates, we'd like to talk about some interesting trends in India's largest companies over the past decade.

Matter of Fact

 

 

Exactly 8 years ago, Reliance Industries had a market cap of about ₹2 lac crore. India's quarterly GDP at that time hovered at about ₹20 lac crore. Fast forward to the present day, Reliance's market cap stands at more than 5 times what it was - at about ₹11 lac crore. About ₹5 lac crore of the ₹11 lac crore was added in the last 6 months!!! And talking about GDP, this quarter, India's GDP stood at ₹26 lac crore.

 

There are few businesses that have the sheer might and size of Reliance, but we wanted to help you visualise its way to the top. Working towards that, we made a video to show you how India’s largest company, Reliance, and other big firms, became what they are today!

 

Download Brief

Market updates in a minute

 

 

Markets Last Week

 

Nifty 50
11,464.45
1.15% ▲
 
Sensex
38,854.55
1.30% ▲
 
Nifty 500
9,446.40
0.73% ▲
 
Bank Nifty
22,479.95
3.88% ▲

 

The Big Picture

 

 

  • Industrial production in India shrank by 10.4% year-on-year in July of 2020. It marks the fifth straight month of falling industrial output due to the coronavirus pandemic.

  • Multi-cap mutual funds are those that are supposed to invest in stocks of small, mid and large market capitalization companies, unlike mid-cap, large-cap, or small-cap focussed funds that are supposed to invest only in stocks that match their market cap range.

  • As per new SEBI guidelines, multi-funds will have to invest 25% of their total fund corpus in small/mid/large-cap stocks each. The remaining 25% can be used at the discretion of the fund manager.

  • Multi-cap funds would invest a large portion of their money in large-cap companies. Now, multi-cap funds will have to sell huge stakes in large-cap firms which might cause a drop in their price. Also, they will lap up shares of mid-cap and small-cap firms which might now see growth in terms of price appreciation.





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