Decision to include Adani Ports in Sensex, giant IT company Wipro out

New Delhi, May 24 (HS). This time the Bombay Stock Exchange (BSE) has decided to make major changes in its benchmark index Sensex as well as its other indices. BSE has decided to include Adani Ports in the Sensex as part of this yearly rebalancing exercise. IT sector giant Wipro will be out of the Sensex. These changes in the Sensex will be effective from June 24, a month later.

According to the information provided by BSE, the stocks of the 30 companies included in the Sensex are reviewed every 6 months under the rebalancing exercise. In this review, companies are retained in the Sensex or other index based on their performance or they are removed and some other company is given a place. This time, under the rebalancing exercise, apart from the Sensex, changes are also being made in BSE 100, Sensex 50, Sensex Next 50 and BSE Bankex.

According to BSE, Rural Engineering Corporation (REC), Canara Bank, Punjab National Bank, Cummins India and HDFC AMC are being included in the BSE 100 index. SBI Cards, Jubilant Foodworks, Page Industries, ICICI Prudential Life Insurance and Zee Entertainment Enterprises, which are currently present, are being shown the way out of this index. Similarly, Divi's Laboratories is being removed from Sensex 50. Tata Group's retail company Trent will take its place.

According to experts, the stocks of companies whose stocks are included in the index or excluded from the index are also affected because many schemes of mutual fund houses are index based. Whenever a mutual fund house invests money in its index fund, all the stocks included in the index get money from it, which increases the possibility of an increase in the price of the stocks of the companies. Similarly, when a mutual fund house withdraws money from an index fund, it also has a negative impact on the market price of the stocks of the companies.