Adani Enterprises Limited is likely to replace Wipro on the benchmark index of the Bombay Stock Exchange (BSE) and is expected to be officially announced on Friday, May 24 as part of the semi-annual rebalancing exercise for the BSE indices, according to IIFL Alternative Research.
This will mark the first inclusion of a Gautam Adani-owned company in the 30 share benchmark index , if this change occurs. Although the Adani Enterprises was projected to join the Sensex in 2024 but its chances were affected by the aftermath of the Hindenburg Research report.
AEL's addition to the Sensex will result in financial movements, according to IIFL Alternative Research, such as:
Inflows: Approximately Rs 1,000 crore (around USD 118 million) from passive funds tracking the index.
Outflows: Wipro is expected to see outflows of about Rs 500 crore (roughly Rs 56 million) following its exclusion.
Similarly, Wipro, which will be excluded from the index, is expected to see outflows of around Rs 500 crore.
Market performance
The stocks of AEL since the beginning of this year has seen a significant surge by over 10 per cent. On the other hand, Wipro's stock declined by more than 2.3 per cent year to date.
The shares of AEL on Thursday, May 23 at 1:24 pm IST were trading at Rs 3,307.65, up by 5.31 per cent.
In addition to the changes in the Sensex, the BSE 100 index is also set for a revamp/ Representational image | File
Changes to BSE 100 Index
In addition to the changes in the Sensex, the BSE 100 index is also set for a revamp. IIFL Alternative Research forecasts five new additions and deletions:
New Additions: Jio Financial Services, Adani Green Energy, REC, Adani Power, and Adani Energy Solutions.
Deletions: Page Industries, SBI Cards and Payment Services, ICICI Prudential Life Insurance Company, Zee Entertainment Enterprises, and Jubilant FoodWorks.
