Moneycontrol News
Shares of Vedanta and Dr Reddy’s Labs were lower on Monday morning, even as the former replaced the pharma major on the Sensex, effective June 18.
Vedanta fell over 3.5 percent as weakness in global metal names weighed on sentiment in such stocks here too. Meanwhile, Dr Reddy’s Laboratories fell as investors saw risk in its right to launch Buprenorphine and Naloxone sublingual film in the US markets.
Vedanta touched a 52-week low of Rs 230.25. Meanwhile, it touched an intraday high of Rs 236.90. Meanwhile, Dr Reddys Laboratories touched an intraday high of Rs 2,356.00 and an intraday low of Rs 2,290.00.
The Sensex index has undergone a change, effective June 18, 2018, as Dr Reddy’s Labs gets replaced with Vedanta. Speaking on the reconstitution, Motilal Oswal observed that weight of metals is set to increase by 130 basis points to 2.6 percent, while healthcare counterpart is set to hit an eight-year low.
Also Read: Sensex rejig: Motilal Oswal expects upgrade in combined EPS
“Vedanta will be included in the benchmark, with weight of 1.3 percent, taking Metals’ weight to 2.6 percent (+130bp). With this inclusion, the metals sector will have two stocks in the benchmark (Tata Steel having 1.3 percent weight),” analysts at the firm wrote in the report.
Meanwhile, with the exit of Dr Reddy’s Labs (weight: 0.8 percent), healthcare stands to lose the most in terms of weight (-70bp to 1.7 percent). Earlier, in December 2017, Cipla and Lupin were excluded from the benchmark, Motilal Oswal further observed.
“Healthcare’s weight will now be at an eight-year low, with the exclusion and also due to the significant underperformance of the sector over the last two years. Sun Pharma (weight: 1.7 percent) will be the only healthcare stock in the benchmark index.”
At 10:27 hrs Dr Reddys Laboratories was quoting at Rs 2,335.00, down Rs 16.10, or 0.68 percent, on the BSE. Meanwhile, Vedanta was quoting at Rs 229.80, down Rs 8.95, or 3.75 percent.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
