Four stocks —Tata Motors, Tata Motors with Differential Voting Right (DVR), Yes Bank and Vedanta — will be dropped from the BSE’s benchmark Sensex from December 23. UltraTech Cement, Titan Co Ltd and Nestle India will be added to the index, Asia Index, a joint venture between S&P Dow Jones Indices and the BSE, said in a statement.
Besides, UPL and Dabur India will find a place in the S&P BSE Sensex 50, replacing Indiabulls Housing Finance and Yes Bank. Among other changes, Indiabulls Housing Finance, Yes Bank, InterGlobe Aviation, SBI Life Insurance Company and Info Edge (India) will make entry in the S&P BSE Sensex Next 50, while Cadila Healthcare, Dabur India, Glenmark Pharmaceuticals, UPL Ltd and Edelweiss Financial Services will be dropped from the index.
The changes will be effective from December 23, 2019,
Asia Index said. Apart from these, changes have been made in several indices including S&P BSE 500, S&P BSE 200 and S&P BSE 100.
Meanwhile, stock markets ended lower for the second straight day on Friday, weighed by losses in IT and bank stocks, as investors baulked at expanding their portfolios amid high valuations and growth concerns. After trading on a weak note throughout the day, the BSE Sensex ended 215.76 points, or 0.53 per cent, lower at 40,359.41. Similarly, the broader NSE Nifty settled 54 points, or 0.45 per cent, down at 11,914.40.
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.
On the other hand, Tata Steel gained 3.74 per cent, NTPC 2.35 per cent, Vedanta 2.27 per cent and ONGC 2.18 per cent.
“Market is on an edge given high valuations for blue-chips, not providing a headroom for main indices to move higher trading at P/E of 26x on a trailing basis. Lack of new trigger in the coming week and focus being on India’s weak GDP data to be announced next week, is impacting the market. The RBI’s interpretation of this data and possible change in stance from the current accommodative monetary policy to neutral may hurt the rally. Fresh concerns over stringent norms for US H1-B visa dragged IT heavyweights,” said Vinod Nair, head of research, Geojit Financial Services.
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