In a significant development for the Indian market, Reliance Industries Ltd (RIL) made history by becoming the first Indian company to surpass the Rs 20 lakh crore market capitalization milestone during Tuesday’s trading session.
The benchmark Sensex surged by 0.68 percent, gaining 483 points to reach 71,555.19, while the NSE Nifty climbed 127 points to 21,743.25. Riding the wave of this rally, RIL’s stock surged to its 52-week high of Rs 2,958 before settling at Rs 2,928.95, with a market capitalization of Rs 19.81 lakh crore at the close.
The bullish sentiment was underpinned by significant support from heavyweight RIL, which fueled the rally and bolstered the index. Furthermore, positive trends in global markets provided additional momentum to the upswing, according to Om Mehra, Technical Analyst at SAMCO Securities.
The MSCI Global Standard Index underwent a quarterly rejig on Tuesday, potentially attracting nearly $1 billion in inflows from passive foreign institutional investors (FII) funds. Stocks like NMDC, GMR Airports, Union Bank, BHEL, and Punjab National Bank gained attention following the MSCI review, noted Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial.
Despite recent turbulence, particularly in the banking sector due to mixed financial earnings and delays in central bank rate cuts, the positive market sentiment was bolstered by a rebound in banking stocks. Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd, highlighted that while the markets closed on a positive note, ongoing volatility stemming from geopolitical concerns, elevated valuations, and FII selling may continue to weigh on investor sentiment.
The achievement of Reliance Industries in surpassing the Rs 20 lakh crore market capitalization mark underscores its significance as a key player in India’s economic landscape. As markets navigate through dynamic shifts and uncertainties, the resilience and performance of leading companies like Reliance serve as pillars of stability and growth.
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