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Adani Ports and Special Economic Zone, a subsidiary of the Adani Group, is set to join the prestigious Sensex, India's benchmark equity index. This move, effective from June 24th, will see Wipro, an IT major, being replaced by Adani Ports in the 30-share index.
The inclusion of Adani Ports in the Sensex is a significant milestone for the Adani Group, marking the first time a stock from the conglomerate has secured a place in the index. This move reflects the strong performance of Adani Ports, whose shares have nearly doubled in value over the past year, outperforming Wipro, which has delivered a comparatively modest 16% return during the same period.
The rejig of the Sensex is part of a semi-annual review conducted by S&P Dow Jones Indices, which manages the index. The changes are designed to ensure that the Sensex remains representative of the performance of the Indian economy, reflecting the growth and evolution of different sectors.
In addition to the changes to the Sensex, the Bombay Stock Exchange (BSE) has also announced adjustments to several other indices, including the Sensex 50, Bankex, BSE 100, and Sensex Next 50. These changes involve the addition and removal of various stocks, with the aim of aligning the indices with the current market landscape.
The inclusion of Adani Ports in the Sensex is expected to attract inflows from passive funds that track the index, providing a positive boost to investors in Adani Ports. The rejig also underscores the growing prominence of the Adani Group within the Indian economy, reflecting its ambitious expansion plans and its commitment to driving growth across various sectors.
Overall, the changes to the Sensex and other indices reflect the dynamic nature of the Indian stock market and the efforts to ensure that these indices continue to accurately represent the performance of the broader economy.
Source: Adani Ports wins hot seat in Sensex as Wipro shown the door