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Reliance Industries Ltd (RIL) may tower over India’s corporate landscape with the largest market capitalization on the bourses, but when it comes to the Nifty 50, the benchmark index that mirrors India’s stock market pulse, it plays second, or rather, third fiddle. As of September 30, RIL ranked third in index weight at 8.18%, behind HDFC Bank at 12.87% and ICICI Bank at 8.52%. The reason lies not in its valuation, but in what investors can actually trade.The free-float factorThe Nifty 50 doesn’t assign weight based on total market capitalization. Instead, it uses a free-float market capitalization method, which factors in only the shares available for trading by the public. Promoter holdings, government stakes, and other locked-in shares are excluded.RIL’s promoter group, led by the Ambani family, controls roughly half the company’s shares. That means only the remaining portion, the free float, contributes to its index weight.By contrast, both HDFC Bank and ICICI Bank have public shareholding levels above 80%, giving them a far greater representation in the index calculation despite smaller total market caps. In the Nifty’s arithmetic, that translates to more weight, even if the total market value is smaller.This distinction is crucial. As the National Stock Exchange (NSE) explains, the Nifty 50 “is computed using a float-adjusted, market capitalization-weighted methodology, wherein the level of the index reflects the float-adjusted market capitalization of all stocks.” The system, adopted in June 2009, ensures that the index reflects the market’s investable portion rather than sheer corporate scale.Why the math favours banksUnder this framework, HDFC Bank’s free-float advantage gives it the heftiest share of the Nifty at 12.87%, followed by ICICI Bank’s 8.52%. Reliance, despite being India’s most valuable company, comes in third at 8.18%.Infosys and Bharti Airtel round out the top five with weights of 4.6% and 4.53%, respectively.Sector-wise, financial services command the largest share of the index at 36.47%, followed by information technology at 9.91% and oil, gas and consumable fuels at 9.79%, the category where Reliance remains the dominant player.This composition means that banking stocks, with their large free floats and high liquidity, exert a stronger influence on the benchmark’s movements than capital-heavy groups with concentrated ownership structures.Also read | 15 stocks to shop for this Diwali; SBI Securities eyes up to 25% upside. Check listWhat it means for investorsFor investors, this weighting system has real implications. A stock’s weight determines how much its price moves sway the Nifty 50. So while Reliance’s size and influence over India Inc. are undeniable, its relatively lower free float keeps its impact on the index below that of HDFC Bank. A 1% swing in HDFC Bank, for instance, nudges the Nifty far more than a similar move in Reliance.In effect, a company with a smaller market cap but a higher free-float ratio can punch above its weight in index terms. The free-float adjustment makes the index more representative of the market’s investable portion and less skewed toward companies with large but tightly held valuations.On Wednesday, October 8, Reliance shares fell 1.3% to Rs 1,367.3, retreating after a 1.6% gain over the previous two sessions. Even so, RIL remains India’s most valuable company, just not the heaviest stock on the Nifty 50.Also read | Tata Steel shares are up 25% in 2025. Can the rally hold above Rs 175?(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The world just had its third-hottest September on record, the Copernicus Climate Change Service said on Thursday, as global average temperatures remained stuck near historic highs for yet another month.September did not break the record for the month set in 2023 and was only marginally cooler than the same period last year, said the EU's global warming monitor."The global temperature context remains much the same, with persistently high land and sea surface temperatures reflecting the continuing influence of greenhouse gas accumulation in the atmosphere," said Samantha Burgess, strategic lead for climate at Copernicus.September was 1.47C above the 1850-1900 average used to define the pre-industrial period before human activity began significantly influencing the climate.Such incremental rises may appear small. But scientists say every fraction of a degree of extra warming further destabilises the planet, raising the risk of extreme weather and triggering destructive climate tipping points.Global temperatures have been pushed steadily higher by humanity's emissions of greenhouse gases, primarily from fossil fuels burned on a massive scale since the industrial revolution.Scientists expect that 2025 will be the third-hottest year after 2024 and 2023, with recent months tracking just behind the records set during this extraordinary stretch.Nations face this reality as they gather in Brazil next month for the UN climate negotiations held every year to address the collective response to global warming.Major economies are not cutting emissions fast enough to avoid the worst impacts of climate change, and many are still approving new oil, coal and gas projects. Copernicus uses billions of measurements from satellites, ships, aircraft and weather stations to aid its climate calculations.Its records go back to 1940, but other sources of climate data -- such as ice cores, tree rings and coral skeletons -- allow scientists to expand their conclusions using evidence from much further in the past.Scientists say the current period is likely the warmest the Earth has been for the last 125,000 years.

ET Intelligence Group: Canara Robeco Asset Management Company plans to raise ₹1,326 crore through an offer for sale (OFS). The promoter's stake will decline to 75% after the issue from 100%. The fund house's business is largely equity-driven with equity-oriented schemes accounting for around 92% of its quarterly average assets under management (QAAUM). That makes its earnings sensitive to equity market volatility. The company has the lowest profit after tax margin among peers, which is reflected in its relatively modest IPO valuation. The issue is suitable to long-term investors with a high-risk appetite who can withstand market fluctuations.BusinessEstablished in 1993, Canara Robeco manages 26 mutual fund schemes - 12 equity, 10 debt, and four hybrid. The equity AUM grew by 30.9% annually between FY23 and FY25 to ₹94,757 crore. By equity AUM, the AMC holds the highest share among the top 10 AMCs.As of June 30, 2025, retail and HNI investors accounted for ₹1.01 lakh crore, or 87% of its monthly average AUM. SIP assets formed about 33% of total AUM, well above the industry average of 21%. However, the number of active SIP accounts declined to 21.4 lakh from 23.2 lakh between FY24 and FY25 after new regulations classified inactive accounts (with no transactions for three months) as dormant. The company managed 50.5 lakh folios, of which 99% belonged to individual investors. According to Crisil, SIP AUM in the industry is expected to grow 25-27% annually and equity AUM by 20-21% between FY25 and FY30.124402095FinancialsNet profit more than doubled to ₹191 crore in FY25 from ₹79 crore in FY23, while profit yield improved to 0.18% from 0.14%. However, this remains below 0.19-0.33% for the peers. Revenue rose to ₹404 crore in FY25 from ₹205 crore in FY23. The AMC's QAAUM grew 28.6% annually to ₹1.1 lakh crore during the period. The cost to income ratio improved to 34.2% from 47.7%.ValuationThe IPO is priced at 27.8 times FY25 earnings compared with 48.2 for HDFC AMC and 43.3 for Nippon Life India AMC but higher than 24.6 for Aditya Birla Sun Life AMC and 22.8 for UTI AMC.

New Delhi: A widely forecast crude oil price plunge in 2026 could spell a bonanza for the government, presenting an opportunity to raise fuel taxes for a vital revenue boost after income tax and goods and services tax (GST) cuts or, if it allows state-run oil firms to lower pump prices, sharply curb inflation, said experts.The US Energy Information Administration has projected an average price of $52 a barrel for Brent next year, down from the current $66, average price of $71 so far in 2025 and $80 recorded in 2024. Since 2004, the global benchmark for crude oil prices has averaged $52 or lower only twice — in 2015 and 2020. Wall Street banks Goldman Sachs and JP Morgan see Brent at $56 and $58, respectively, in 2026.For India, which spent $158 billion on crude imports in 2022-23, the relief is already significant: the April-August import bill was down 17% year-on-year to $50 billion. Likely Higher Fuel TaxesIf forecasts hold, refiners’ margins will swell, forex savings will balloon, the trade deficit will narrow, inflation will soften, gross domestic product (GDP) growth will get a boost and, most importantly, the government could see a massive revenue increase by raising fuel taxes.The government is unlikely to rush to provide pump price relief, preferring first to gauge the impact of recent income tax and GST cuts on revenue, according to Sunil Kumar Sinha, professor of economics at the Institute for Development and Communication, Chandigarh. 124399582“This government is far more sensitive to the fiscal correction roadmap than (those) in the past,” he said.The government believes fiscal credibility carries weight with foreign investors, he added, noting India’s recent S&P credit rating upgrade.Lower oil prices would also support Prime Minister Narendra Modi’s capital expenditure and welfare agenda through his third term, said industry executives.“Oil has been Modi’s great ally,” said one executive, pointing to the price collapse that began in June 2014 soon after Modi first became PM and enabled oil-sector reforms and sharp tax increases that funded government programmes.Crude prices halved within a year of Modi assuming charge.Brent has averaged $69 a barrel during Modi’s years at the helm, compared with $83 during his predecessor Manmohan Singh’s decade.Much of the benefit has gone to the exchequer: petroleum’s contribution to the Centre surged to Rs 4.92 lakh crore (23% of revenue) in 2021-22 from Rs 1.53 lakh crore in 2013-14, before easing to Rs 4.15 lakh crore (13%) in 2024-25.Revenue rose as fuel taxes soared before moderating after the onset of the full-scale Russia-Ukraine war in February 2022.With diesel and kerosene subsidies eliminated and LPG support sharply cut, fuel subsidies fell to 0.04% of GDP in 2024-25 from 1.75% in 2013-14.Yet pump prices remain far higher than they were a decade ago.In Delhi, petrol retails at Rs 94.77 per litre, up from Rs 71.41 in May 2014; diesel is at Rs 87.67, versus Rs 56.71 then. This is the case even as Brent has fallen to $66 per barrel from $109 in May 2014.In recent years, consumer relief has usually aligned with the election calendar.With key state polls in West Bengal, Assam, Tamil Nadu and Kerala due in 2026, some of the gains may reach voters, experts said.“If crude prices fall so much, we can expect some consumer relief — although it will depend on fiscal priorities,” said DK Joshi, chief economist at CRISIL.Pump prices have been frozen for nearly three years, a sharp reversal from the early Modi-era deregulation that allowed daily revisions in line with global fuel prices.

Mumbai: Healthcare and Information Technology (IT) stocks witnessed the highest foreign outflows in the second half of September as foreign investors dumped shares worth ₹4,521 crore and ₹4,036 crore, respectively, according to NSDL data. The selling came amid heightened uncertainty over Donald Trump's proposed H-1B visa restrictions - a major source of worry for the domestic IT industry - and new pharma tariff measures, weighing down sentiment in both these sectors."Export-oriented sectors like healthcare and IT saw outflows as President Trump imposed tariffs on pharma companies, which initially pertained to the branded segment, but the fear of further unbridled tariffs continues to fuel investor nervousness," said U R Bhat, co-founder & director, Alphaniti. "IT sector is under a cloud due to the revised H-1B visa norms."The healthcare sector saw selling worth ₹1,601 crore in the first half of September after outflows worth ₹1,417 crore in August.Between January and August, foreign investors withdrew shares worth ₹10,964 crore from the healthcare sector. The sell-off was sharper in IT stocks as they divested shares worth ₹61,786 crore in the sector in the same period."The recent US decision to impose a $100,000 fee on new H-1B visas has spooked investors, who have been awaiting clarity on demand recovery and policy stability before rebuilding positions," said Sudeep Shah, head of technical and derivatives, SBI Securities. "While the pace of selling has moderated, the Nifty IT index still trades below key short- and long-term moving averages." 124401926Shah said the 20-day EMA (Exponential Moving Average) zone of 34,840-34,850 is expected to act as immediate resistance. The Nifty IT index closed at 35,232 on Friday.Overall, FPIs sold shares worth ₹19,647 crore across 15 sectors during the period, compared with ₹16,737 crore in the first half.Despite the cuts in the GST rates, overseas investors offloaded shares worth over ₹3,000 crore in the consumer durables and Fast-Moving Consumer Goods (FMCG) sectors in the second half of September.FOREIGN INVESTOR PURCHASES Global investors bought shares worth Rs 1,733 crore in the automobile sector in the second half of the month, after purchasing Rs 1,908 crore in the first half of the month. The sector witnessed inflows worth Rs 1,803 crore in August, as the sector stands to benefit the most due to revised GST rates. Bhat said auto companies stand to benefit the most from the fall in GST levied on them, along with most auto ancillaries as they can pass the costs easily. Overseas investors purchased shares worth Rs 5,523 crore across eight sectors in the second half of September

Mumbai: The account aggregator (AA) framework and the newly launched unified lending interface (ULI) platform can play a key role in expanding credit access to the under-served, Reserve Bank of India governor Sanjay Malhotra said on Wednesday. Greater interoperability among account aggregators — or, financial services intermediaries — and availability of richer financial data will enhance network benefits for both users and lenders, Malhotra said. The ULI platform — a digital public infrastructure (DPI) like UPI to standardise and simplify lending — will further deepen financial inclusion by strengthening the credit delivery ecosystem through banks and NBFCs, he added.Malhotra was addressing at the Global Fintech Fest 2025 in Mumbai. “RBI is in the process of introducing standards designed to improve customer onboarding processes, enhance user interfaces, strengthen data security, and increase transparency and awareness in consent management and data sharing under the account aggregator framework,” he said. “The account aggregator framework can help unleash the potential in this area by making available data from the providers to the users.”The RBI governor said the success of the AA framework depends on integrating more financial information, particularly data crucial for assessing an individual’s financial status, as well as ensuring interoperability across account aggregators. Without interoperability, he said, it becomes difficult for financial information providers (FIPs) and financial information users (FIUs) to integrate with each one individually and derive the intended network benefits. At present, there are 17 AAs, 650 FIUs and 150 FIPs, collectively serving around 160 million accounts and handling 3.66 billion requests from FIUs.Malhotra said ULI aims to enable lenders to use data to build alternative credit models, helping expand credit access to new segments that currently lack formal credit histories. “Credit is the lifeblood of inclusive growth and despite best efforts by government and RBI and the banking system, while huge progress has been made in delivery of credit, there is still unmet demand and ULI can certainly be a bridge in meeting this need,” he said.Since its launch, the ULI platform has expanded to 120 data sources and services, onboarded 58 lenders, and facilitated the sanctioning of 3.2 million loans amounting to Rs 1.7 trillion. Malhotra said RBI will continue to build on the digital rupee, adding that interoperability between the e-rupee and UPI is driving wider adoption without compromising user convenience. He noted that programmability features in the e-rupee are unlocking new possibilities in purpose-driven direct benefit transfers, subsidies and targeted lending. Since its launch in December 2022, the retail e-rupee pilot has expanded to include 19 banks and around seven million users, enabling both person-to-person and person-to-merchant transactions. The RBI governor also urged fintech players to build for inclusion, adopt a customer-first approach, and design products and services that are simple, accessible and supported by assistive technologies. He emphasised that vulnerable groups such as senior citizens, individuals with limited digital literacy and persons with disabilities should not be left behind. He also called on the industry to innovate in credit delivery while prioritising trust and compliance.