📷 Image Credits: The Times of India
Adani Ports has made a significant entry into the S&P BSE Sensex today, marking a momentous occasion for the Indian stock market. This strategic move comes as part of the semi-annual rejig, where Adani Ports and Special Economic Zone (APSEZ) replaces Wipro in the prestigious 30-stock index. While Adani Ports joins the Sensex with high hopes and expectations, Wipro bids farewell to its long-standing position in the index.
The inclusion of Adani Ports in the Sensex is expected to have a profound impact on the market dynamics. Brokerage firm Nuvama anticipates passive inflows of $259 million with the addition of 14.9 million shares of Adani Ports. On the other hand, Wipro’s exclusion from the index may trigger outflows of $170 million, signaling a shift in investor sentiment towards the two companies.
As a result of the reshuffling, several stocks in the Sensex are likely to witness changes in their weights. Stocks such as Bharti Airtel, Infosys, Kotak Mahindra Bank, ICICI Bank, Tech Mahindra, Tata Steel, and IndusInd Bank are expected to see an increase in their weights, reflecting the evolving composition of the index. Conversely, stocks like Mahindra & Mahindra (M&M), Reliance Industries (RIL), Bajaj Finserv, HDFC Bank, Maruti Suzuki, ITC, and Larsen & Toubro (L&T) may experience a decrease in their weights.
The market response to Adani Ports’ inclusion has been notably positive, with the stock rallying almost 98% over the last 12 months. Comparing its performance to Wipro, Adani Ports has showcased remarkable returns, further solidifying its position as a promising stock in the market. As of Friday, Adani Ports shares were trading at ₹1,489.75 on the NSE, reflecting a gain of ₹20.35 or 1.38%. Meanwhile, Wipro shares were around ₹491, showing a slight decline of ₹1.15 or 0.23%.
In conclusion, the entry of Adani Ports into the Sensex and the exit of Wipro mark a significant milestone in the Indian stock market. The reshuffling of the index reflects the evolving landscape of the business world and the strategic decisions made by companies to further their growth and value creation strategies.
