Tata Motors will replace Dr Reddy's in the S&P BSE Sensex semi-annual rebalance (SAIR) today. This rejig will lead to a net inflow of $35 million, according to Nuvama Alternative & Quantitative Research.
This includes $100-million outflow from exclusion of Dr Reddy's, with a weightage of 0.8 percent on the index and $135 million inflow from inclusion of Tata Motors, with a weightage of 1.1 percent. This will happen due to portfolio rejigs by exchange traded funds and asset management companies.
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The changes will come into effect from the opening of market hours on December 19, as per a release shared by the BSE, which operates Asia Index in partnership with S&P Dow Jones Indices LLC.
From S&P BSE 100 and S&P BSE Sensex Next 50 indices, the stocks of Adani Total Gas and Hindustan Petroleum Corporation will be removed, and Adani Power and Indian Hotels Company will be added. Meanwhile, no changes had been announced to the S&P BSE Sensex 50 and S&P BSE BANKEX indices.
On December 16, Sensex ended lower by 461 points or 0.75 percent at 61,337 on the back of weak global cues. The benchmark recorded the worst weekly drop in three months.
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