Adani Ports Joins Sensex Monday, Wipro Exits in Index Shake-Up

Starting Monday, Adani Ports will become part of the S&P BSE Sensex, replacing Wipro. This change is part of the regular semi-annual update of the 30-stock index. As a result, Adani Ports Special Economic Zone (APSEZ) will start trading as a Sensex stock from Monday.

Expected Passive Inflows and Outflows

The inclusion of Adani Ports is expected to bring in passive inflows of about $259 million, along with the addition of 14.9 million shares, according to Nuvama’s estimates. On the other hand, Wipro’s exit might lead to outflows of $170 million.

Stock Performance Over the Last Year

Adani Ports shares have surged nearly 98% over the past year, although they are down from their 52-week high of Rs 1,621.40 on the NSE. In comparison, Wipro shares have gained 27% in the same period.

As of late Friday, Adani Ports shares were trading at Rs 1,489.75 on the NSE, up by Rs 20.35 or 1.38%. Meanwhile, Wipro shares were at Rs 491, down by Rs 1.15 or 0.23%.

Changes in Index Weights

Alongside these changes, the weights of seven stocks in the Sensex will increase. These stocks include Bharti Airtel, Infosys, Kotak Mahindra Bank, ICICI Bank, Tech Mahindra, Tata Steel, and IndusInd Bank. This adjustment is expected to result in passive inflows of $101 million.

Conversely, the weights of seven other stocks will decrease, namely Mahindra & Mahindra (M&M), Reliance Industries (RIL), Bajaj Finserv, HDFC Bank, Maruti Suzuki, ITC, and Larsen & Toubro (L&T), leading to passive outflows of $178 million.

FTSE Adjustments and Expected FII Inflows

On Monday, adjustments will also occur in the FTSE index, with net passive foreign institutional investor (FII) inflows of $250 million expected in India. Passive inflows are anticipated for 25 stocks, including ICICI Bank ($170 million), Bharti Airtel ($98 million), Kotak Mahindra Bank ($75 million), Vodafone Idea ($44 million), Tata Technologies ($17 million), and mamaearth operator Honasa Consumers ($8 million).

Stocks expected to see outflows include RIL ($49 million), Adani Enterprises ($30 million), Infosys ($11 million), Tata Consultancy Services (TCS, $9 million), HDFC Bank ($7 million), Hindustan Unilever (HUL, $5 million), Tata Motors ($5 million), and State Bank of India (SBI, $3 million).

The upcoming changes in the Sensex and FTSE indices will impact the flow of investments into and out of various stocks, reflecting the evolving dynamics of the stock market and investor strategies.