Indian Stock Market in Awe When Reliance Stock Doubles in Value
The shares relating to Reliance Industries Limited are becoming much of a problem for the Indian Stock Market. The problem notably arose for India’s equity mutual funds when stocks of Reliance managed to secure double in their rates in contrast with its low price recorded in March 2019. However, it was due to the well in time action carried out by its Chairman Mukesh Ambani who initiated a massive fundraising movement which has helped Reliance to witness a huge increase in the run-up of the company which was closed at 11% at the end of the year 2019 but on Friday went upward accumulating a percentage of 17.4%.
The news amongst the money managers all across India spread like a wildfire where everyone cued in to buy a fair piece of share in the stocks of India’s topmost and highly valued company. However, as a policy of the company no stock trader is allowed to get his hands on more than 10% of a single stock belonging to the company which simply means that even though the funds are injected yet they cannot raise stocks and therefore there is a foreseeable risk to the stock market, said the MD of Kotak Asset Management Company of India, Mr. Nilesh Shah.
He further stressed that only technicians understand the technicalities of the system therefore it becomes almost impossible to apprise them what are the reasons for a fund for under-performing.
However, the business giant of India, Reliance, had been reported to currently dominating the entire stock market of India which got a big boost in its market share value exceeding over $200 billion and helped it in breaking its last week’s record. The shares of Reliance have gone up for over 12%.
However, in contrast with Reliance’s share value exceeding over US$ 200 billion, the money managers within India claimed that they collectively hold stock of the company worth 10.3 Billion Indian Rupees which in August, makes the stock most sold asset in terms of its value within the Indian market.