RIL to L&T: Old firms' sway in Nifty50 index weakens rerating case

Companies that are part of the benchmark Nifty50 index for more than a decade continue to have a considerable sway on it. 

Sample this: 33 out of the 50 companies have been part of the index since 2012. 

These companies account for 90 per cent of the profit pool. 

Further, they have a combined weighting of 83 per cent in the Nifty. 

According to a report by BNP Paribas, the high influence of old companies in the index weakens the case for a rerating. 

“The 17 new stocks have only 14 per cent weight in Nifty50 and account for