Adani Enterprises could replace Wipro in BSE’s semi-annual rejig, potentially joining Sensex. Anticipated inflows of $118 million for Adani and outflows of $56 million for Wipro are expected. Sensex, India’s top index, comprises the top 30 firms.
Adani Enterprises’ prolonged share rally could lead to its inclusion in Sensex in a month, potentially replacing Wipro. BSE is expected to announce its semi-annual index rejig tomorrow, with adjustments scheduled for June 21.
Adani Enterprises’ Potential Impact on Market and Indices
“IIFL Alternative Research anticipates Adani Enterprises joining Sensex, replacing Wipro. They also foresee five additions and deletions in BSE100,” stated the research firm.
IIFL Alternative Research expects Adani Enterprises (AEL) to replace Wipro on BSE Sensex in the upcoming index reshuffle. The official announcement is anticipated on Friday, May 24, coinciding with the semi-annual rebalancing of BSE indices. This marks the debut of any Gautam Adani-led conglomerate company in the 30-share BSE Sensex index. Despite expectations for Adani’s inclusion in 2023, the Hindenburg saga hindered its chances.
Adani Enterprises Ltd is poised to replace Wipro in the significant Sensex index during the routine reshuffle of BSE indices, with an official announcement anticipated by Friday, May 24.
“We anticipate Adani Enterprises joining Sensex, replacing Wipro. In BSE100, we predict 5 additions and deletions,” stated IIFL Alternative Research.
Adani Enterprise’s inclusion would mark a milestone for the group, as it would be the first time a Gautam Adani-led company features in the 30-share BSE index.
Per IIFL Alternative Research, Adani Enterprises’ inclusion in Sensex could attract $118 million (around Rs 1,000 crore) in passive fund investments, while Wipro’s exclusion may lead to outflows of $56 million (about Rs 500 crore).
Both Adani Enterprises and Wipro are Nifty constituents. In the last reshuffle on December 19, 2023, Tata Motors replaced Dr Reddy’s Laboratories.
The brokerage noted five potential additions and deletions in the BSE 100 index. REC, Jio Financial Services, Adani Power, Adani Green Energy, and Adani Energy Solutions are likely replacements for ICICI Prudential Life Insurance Company, Page Industries, Zee Entertainment Enterprises, SBI Cards and Payment Services, and Jubilant FoodWorks.
During Thursday’s trading session, Adani Enterprises shares surged, reaching a 52-week high of Rs 3,409.05, marking an 8.58% increase.
About 3.37 lakh shares traded on BSE, exceeding the two-week average volume of 1.05 lakh shares. Daily turnover reached Rs 111.85 crore, contributing to an m-cap of Rs 3,86,597.18 crore.
Adani Ports rose by 4.72%, while Adani Power increased by 2.79%.
In response to a news report alleging Adani Group’s provision of substandard coal to a state-owned power company a decade ago, an Adani spokesperson denied the claims as “false and baseless.”
The spokesperson stated, “Adani Global Pte Ltd did not supply inferior coal to TANGEDCO contrary to tender and purchase order specifications. Quality testing at the receiving plant is standard practice regardless of the supplier’s declaration.”
The spokesperson also noted the complexity of commenting on individual cases due to extensive data, time passage, and legal obligations.
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