Adani Ports is ready to replace Wipro in the Sensex, 30-stock blue-chip index, announced the index operator on Friday, May 24. This decision was made during the BSE’s semi-annual rebalancing exercise and will be effective from June 24.
With this inclusion, Adani Ports is the first stock from the 10-pack Adani Group to enter the 30-pack Sensex. In the Nifty 50 index, there are two Adani stocks – Adani Ports and Adani Enterprises.
IT major Wipro will be excluded from the benchmark 30-stocks index, comprising the country’s most actively traded and largest stocks.
Adani Port is country’s largest private port operator, will become the first from Adani Group, to debut in the prestigious 30-pack Sensex. Earlier in May, Adani Ports posted a 76% rise in its fourth-quarter profit, helped by record cargo volumes.
On Thursday, expectations that Adani Enterprises would replace Wipro had pushed the Adani flagship’s stock nearly 8% higher. Adani Ports too had risen nearly 5%.
Adani Ports’ inclusion in the Sensex will attract inflows of $252 million from passive funds that track the index, according to International Investment Fund Listing (IIFL) Alternative Research. Wipro is expected to see an outflow of $161 million.
Sensex is tracked by passive funds with assets of around Rs 1.8 trillion. Shares of Adani Ports & SEZ last closed at Rs 1,416, down 1.9 per cent, while that of Wipro ended at Rs 463.5, with a decline of 0.5 per cent.
BSE also announced changes to its BSE 100, Sensex 50, Sensex Next 50, BSE Bankex, BSE 100 indices.
Jubilant Food Works, SBI Cards, Zee Entertainment Enterprises, Page Industries, ICICI Prudential Life Insurance, will no longer be part of S&P BSE 100 index and will be replaced by Canara Bank, Punjab National Bank HDFC AMC, Cummins India and REC.
Also, Tata Group company Trent Ltd will make an entry in Sensex 50, while Divi’s Laboratories Ltd will be dropped from the index.
AU Small Finance Bank, IDFC First Bank will no longer be part of BSE Bankex from June 24 and will be replaced by Yes Bank, Canara Bank.
Adani Ports Q4 Results
Adani Ports reported a consolidated net profit of ₹2,040 crore for the quarter ended March 2024, registering a growth of 76.2 per cent from ₹1,158 crore in the year-ago period.
The port major’s revenue from operations in Q4 FY24 rose 19 per cent to ₹6,896.5 crore from ₹5,796.85 crore year-on-year (YoY).
The inclusion of Adani Port in the SENSEX index is likely to provide several benefits, including increased visibility, liquidity, and brand recognition. This could lead to increased investor confidence and attract more institutional investors to the port. Additionally, inclusion in the SENSEX index may provide a benchmark for comparing the performance of Adani Port with other major players in the Indian port sector, potentially leading to increased competitiveness and profitability.
