Billionaire Gautam Adani’s cash cow Adani Ports and Special Economic Zone, the shares of which have nearly doubled in the last year, would soon be included in India’s headline equity index Sensex.
S&P Dow Jones Indices on Friday announced that with effect from June 24, Wipro will be removed from the 30-share index and Adani Ports will take its place.
While Adani Ports shares have been on a steady inclination path in the recent past with a 97% return in past year, IT major Wipro has underperformed with a 16% return during the period.
Adani Ports is the first stock from the 10-pack Adani Group to have found a seat in the 30-pack Sensex. In the Nifty50 index, which has India’s 50 largest stocks based on market capitalisation, there are two Adani stocks – Adani Ports and Adani Enterprises.
Inclusion in key indices lead to inflows from passive funds tracking the particular index and is therefore positive for investors in Adani Ports.
Key changes in BSE indices
Stock exchange BSE has also made some tweaks in the constitution of Sensex 50, Bankex, BSE 100 and Sensex Next 50 in the semi-annual rejig of indices.
BSE 100 will see the inclusion of REC, HDFC AMC, Canara Bank, Cummins India and PNB at the cost of Page Industries, SBI Cards, ICICI Prudential Life Insurance, Jubilant FoodWorks and Zee Entertainment Enterprises.
In Sensex 50, Tata Group retailer Trent will be added in place of Divi’s Laboratories.
BSE Bankex will see the inclusion of Yes Bank and Canara Bank at the cost of AU Small Finance Bank and IDFC First Bank.
Sensex Next 50, on the other hand, will bid farewell to Trent, Page Industries, SBI Cards, ICICI Pru Life, Jubilant Food and ZEEL. Stocks that will be included in the index are REC, PNB, Divi’s Lab, HDFC AMC, Canara Bank and Cummins India.
Sensex
Designed to measure the performance of the 30 largest, most liquid and financially sound companies across key sectors of the Indian economy that are listed on the BSE, Sensex is India’s most tracked bellwether index.
Launched on January 1, 1986, Sensex covers more than 40% of total market cap of the listed universe on the BSE. Based on float-adjusted market cap weighted methodology, the index is rebalanced twice every year — in June and December. The top 10 Sensex constituents by index weights include HDFC Bank, Reliance Industries, ICICI Bank, Infosys, L&T, ITC, TCS, Bharti Airtel, Axis Bank and SBI.