Adani Enterprises Likely to Replace Wipro and Become The First Adani Group Stock to Enter Sensex 30

Adani Enterprises Limited (AEL) is an Indian multinational publicly-listed holding company and a part of Adani Group. It is headquartered in Ahmedabad, The flagship company is expected to replace Wipro Ltd. in the benchmark index Sensex 30 in the semi-annual rebalancing exercise of the BSE indices.

What is Index  Rebalancing?

Index rebalancing involves an initial review of assets, setting criteria based on market conditions, and making subsequent adjustments to asset weights, sometimes leading to the addition or removal of specific assets. Here, the inclusion of a company like Adani Enterprises Ltd. translates to more inflows and positive sentiment for the company. An exclusion, like Wipro Ltd. here, will lead to significant outflows.

Inflows worth Rs.1,000 crores from Passive Funds

Adani Enterprises Ltd is anticipated to replace Wipro in the benchmark Sensex during the upcoming semi-annual rebalancing of BSE indices. The official announcement is expected by Friday, May 24. This marks the first time a company of the Adani Group will join the 30-share BSE pack. According to the market estimations, the inclusion of Adani Enterprises in the Sensex is projected to attract inflows of approximately Rs.1,000 crores from passive funds tracking the index.

Market Reaction on AEL and Wipro

The inclusion of Adani Enterprises in the Sensex is projected to attract inflows of approximately Rs.1,000 crores from passive funds tracking the index. The stock of Adani Enterprises Ltd. is up by 6% today and currently trading at Rs.3,334 a piece. The stock has made a new 52-week high today. 

Wipro is set to experience significant outflows due to its exclusion from the Sensex. Despite this setback, Wipro has also shown positive market performance, with its shares trading at Rs 466.60 a piece, reflecting a gain of over 1%.

Conclusion: The anticipated inclusion of Adani Enterprises Ltd.. in the benchmark

Index Sensex 30  signals strong investor confidence in the stocks and inflows worth approximately Rs.1,000 crores from the passive funds, whereas the exclusion of Wipro Ltd.’ expects outflows suggests a loss in investors’ interest in the stock. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.