Gautam Adani-owned Adani Ports and Special Economic Zone Ltd (APSEZ) will replace Wipro Ltd in the 30-stock blue-chip S&P BSE Sensex from June 24, as announced by Asia Index, a joint venture between S&P Dow Jones Indices and BSE, on May 24. This change is part of the BSE’s semi-annual rebalancing exercise, marking the first inclusion of an Adani Group company in the Sensex, effective at the opening of Monday, June 24, 2024.
This inclusion is significant as it marks the first time an Adani Group firm has joined the Sensex. The Adani Group, which has 10 listed firms with a combined market valuation surpassing ₹17 lakh crore, sees APSEZ joining the elite index. Both APSEZ and Wipro are currently constituents of the NSE’s Nifty index. The group’s flagship firm, Adani Enterprises, is also part of the 50-share Nifty.
The changes were announced by Asia Index as part of their periodic review. Along with the inclusion of APSEZ in the Sensex, other changes were also made across various indices. Tata Group’s Trent Ltd will join the S&P BSE Sensex 50, replacing Divi’s Laboratories.
Changes Across Other Indices
The rebalancing exercise includes adjustments in the S&P BSE 100, S&P BSE Bankex, and S&P BSE Sensex Next 50 indices. In the S&P BSE 100 index, REC, HDFC Asset Management Company, Canara Bank, Cummins India, and Punjab National Bank (PNB) will be added. Page Industries, SBI Cards and Payment Services, ICICI Prudential Life Insurance Company, Jubilant FoodWorks, and Zee Entertainment Enterprises (ZEEL) will be excluded.
In the S&P BSE Bankex index, Yes Bank and Canara Bank will replace AU Small Finance Bank and IDFC First Bank.
In the Sensex Next 50 Index, REC, PNB, Divi’s Laboratories, HDFC AMC, Canara Bank, and Cummins India will be included. Conversely, Trent, Page Industries, SBI Card, ICICI Prudential Life Insurance, Jubilant FoodWorks, and ZEEL will be removed from this index.
Impact on Market Movements by Adani Ports inclusion
Adani Ports’ inclusion in the Sensex is expected to bring significant capital inflows, potentially amounting to $252 million, while Wipro may see outflows of approximately $161 million, according to Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research. This adjustment comes on the heels of a notable recovery in Adani Enterprises’ share price, which had rebounded to levels seen before the Hindenburg Research report that triggered a sell-off in Adani’s conglomerate.
Strong Performance of Adani Stocks
Adani Ports and Adani Power have been the best-performing stocks within the group since the report, rising by 86.04% and 157.4%, respectively. These companies were the first to recover from the market dip, with Adani Ports posting a 76% rise in its fourth-quarter profit, driven by record cargo volumes. The stock has surged 6% this week, marking its best performance since early February.
These changes reflect the dynamic nature of the market and the continuous evolution of the indices to represent the most significant and influential companies in India’s economy.
These changes reflect the market’s dynamic nature and the indices’ continuous evolution to represent the most significant and influential companies in India’s economy. Investors will be closely watching the impact of these adjustments on market movements and the performance of the newly included firms. The inclusion of Adani Ports in the Sensex marks a significant milestone for the Adani Group and highlights the growing importance of infrastructure companies in India’s economic landscape.
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