The BSE on Friday announced the reconstitution of the Sensex with Titan, UltraTech Cement and Nestle India replacing Tata Motors, Tata Motors DVR, Vedanta and Yes Bank.
These changes will be effective from December 23. The BSE also announced a rejig in 14 other indices. However, there was no change in the S&P BSE Bankex.
Tata Motors was excluded as the stock has under-performed the benchmark index amid the difficult conditions faced by the domestic automobile sector over the past few months.
The scrip on Friday settled at Rs 162.30 — a drop of Rs 1.90 over the last close. So far this year, the counter has fallen around 7 per cent, while the Sensex has risen over 11 per cent.
Similarly, the Yes Bank stock has been through a bad patch this year because of worries about asset quality. It has dipped around 65 per cent till date, though there has been some relief for its investors in recent times amid talks of capital raising by the private sector lender.
Yes Bank had earlier announced that it had received a binding offer from a foreign investor to infuse $1.2 billion through a fresh issue of equity shares.
The bank’s top management told analysts after the announcement of its second quarter results that apart from the $1.2-billion offer, it has received eight bids from some of the top global private equity firms and domestic funds, aggregating $1.5 billion.
With another bid of $300 million coming from family offices, the lender has received offers worth $3 billion.
The year has not been a rewarding one for investors of Vedanta, too, with the stock falling almost 30 per cent.
Among other changes, UPL and Dabur India will find a place in the S&P BSE Sensex 50, replacing Indiabulls Housing Finance and Yes Bank.
Further, Indiabulls Housing Finance, Yes Bank, InterGlobe Aviation, SBI Life Insurance Company and Info Edge (India) will enter the S&P BSE Sensex Next 50, while Cadila Healthcare, Dabur India, Glenmark Pharmaceuticals, UPL and Edelweiss Financial Services will be dropped from the index.
Meanwhile, the week ended on a disappointing note for stocks with the Sensex finishing 215.76 points, or 0.53 per cent, lower at 40359.41. Similarly, the broader NSE Nifty settled 54 points, or 0.45 per cent, down at 11914.40.
Losses in IT and bank stocks weighed on stocks as investors baulked at expanding their portfolios amid stretched valuations and growth concerns. During the week, the Sensex inched up 2.72 points, while the Nifty gained 18.95 points.
Infosys was the top loser in the Sensex pack on Friday, dropping 2.89 per cent, followed by TCS, Asian Paints, Bharti Airtel and HCL Tech.
IT stocks came under selling pressure following reports of changes in US work visa requirements aimed at protecting American workers, traders said.
Tata Steel gained 3.74 per cent, NTPC 2.35 per cent, Vedanta 2.27 per cent and ONGC 2.18 per cent.
Sectorally, BSE IT, tech, telecom, capital goods, bankex, industrials and consumer durables fell up to 2.21 per cent.
