Adani Ports to enter Sensex from June 24; Wipro to move out
Sixteen months after the release of Hindenburg Research Report, which led to a sharp fall in the stock prices of all Adani Group companies, one the key firms of the group — Adani Ports and Special Economic Zone (APSEZ) has now made into the coveted list of 30 companies that form the BSE Sensex.
The company is the first Adani Group firm to be included in the Sensex ever. However, the group’s flagship firm Adani Enterprises and Adani Ports have been part of the NSE’s Nifty 50 for the past many months.
As per the reconstitution of S&P BSE indices, announced by Asia Index Pvt Ltd (AIPL) on Friday, APSEZ will replace Wipro in the 30-share Sensex with effect from June 24.
This announcement to include Adani Ports to Sensex comes days after Norges Bank, the central bank of Norway, excluded Adani Ports from its Government Pension Fund Global, over the ‘unacceptable risk’ it contributes to human rights violations during the times of war and conflicts.
In January 2023, the US- based Hindenburg Research accused the Gautam Adani led ports-to-energy conglomerate of stock manipulation and accounting fraud, which the company has denied. The report resulted in a massive fall in the market capitalization of listed companies of the group. Their share prices also tanked in the 20-80 per cent range a month after the release of the Hindenburg report.
However, the stock prices of all the Adani Group companies have now erased losses caused by the Hindenburg report. For instance, on Friday shares of Adani Ports traded nearly 84 per cent above the January 23, 2023 level, a day prior to the release of Hindenburg report.
BSE has laid down certain norms for inclusion of companies into S&P BSE SENSEX. They are being included among the top 75 companies based on their average three-month float or total market cap. The Sensex constituents should have a minimum free-float market cap of 0.50 per cent after market cap and liquidity criteria are met. The Sensex undergoes a biannual reconstitution in June and December each year
As per the rejig announced by Asia Index Pvt Ltd, REC Ltd, HDFC Asset Management Ltd, Canara Bank, Cummins India and Punjab National Bank will replace Page Industries Ltd, SBI Cards and Payment Services Ltd, ICICI Prudential Life Insurance, Jubilant FoodWorks Ltd and Zee Entertainment Enterprises Ltd in S&P BSE 100.
Divi’s Laboratories Ltd will be dropped from S&P BSE Sensex 50 and Trent Ltd will be added to the index. AU Small Finance Bank and IDFC First Bank will be replaced by Yes Bank and Canara Bank in S&P BSE BANKEX. Asia Index is a 50-50 partnership between S&P Dow Jones Indices LLC and BSE Ltd.