Adani Ports Joins Sensex as Wipro Exits in June Reconstitution

Adani Ports is set to join the Sensex while Wipro is to be removed, as per the recent reconstitution of S&P BSE indices announced by Asia Index Pvt Ltd (AIPL). This move, effective from June 24, marks a significant development for Adani Group, especially Adani Ports and Special Economic Zone (APSEZ), which becomes the first company from the group to enter the coveted list of 30 companies constituting the BSE Sensex. Notably, Adani Enterprises and Adani Ports have been part of NSE's Nifty 50 for several months now.

This inclusion comes after a turbulent period for Adani Group following the release of the Hindenburg Research Report in January 2023, which accused the conglomerate, led by Gautam Adani, of stock manipulation and accounting fraud. The fallout led to substantial declines in market capitalization and share prices across the group's listed companies. However, despite these challenges, Adani Ports' shares have recovered, trading nearly 84% above their levels prior to the Hindenburg report's release.

The decision to include Adani Ports in the Sensex comes shortly after Norges Bank excluded the company from its Government Pension Fund Global, citing concerns over human rights violations during times of conflict. 

The reconstitution of S&P BSE indices by Asia Index Pvt Ltd also involves other changes. REC Ltd, HDFC Asset Management Ltd, Canara Bank, Cummins India, and Punjab National Bank are set to 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. Additionally, Divi’s Laboratories Ltd will be removed from S&P BSE Sensex 50, with Trent Ltd being added. AU Small Finance Bank and IDFC First Bank will be replaced by Yes Bank and Canara Bank in S&P BSE BANKEX.

This reshuffling is in line with BSE's regulations, which dictate criteria for inclusion in the Sensex, including minimum free-float market capitalization. The index undergoes biannual reconstitution in June and December each year. Asia Index Pvt Ltd, a joint venture between S&P Dow Jones Indices LLC and BSE Ltd, oversees these changes.