Asia Index has announced a restructuring of many of its indices, which will see many participants being moved in and out these indices. Asia Index is an equal venture between S&P Dow Jones Indices LLC and the Bombay Stock Exchange (BSE).
In a circular on Friday, Asia Index said that it will add private sector bank Kotak Mahindra Bank and Tata Motors Differential Voting Rights (DVR) to the benchmark Sensex and remove GAIL India from the index with effect from 19 June 2017. This will take the total number of constituent stocks of Sensex up to 31 from the current 30.
Also, this is the first DVR to be included in the Sensex. DVRs differ from common equity shares in terms of voting rights and dividend. Tata Motors DVR has been part of the benchmark Nifty index since April 2016.
The stock of Kotak Mahindra Bank was up 1.70% at Rs 953.35 during intraday trade today while that of Tata Motors DVR were up 1.76% at Rs 271.40. At 3:30 pm, stock of Kotak Mahindra Bank closed 0.19% up at Rs 939.20 while that of Tata Motors DVR closed 0.60% down at Rs 265.10. The S&P BSE Sensex closed 0.35% up at 30,570.97 points.
The BSE has also made a number of changes in the BSE 100, BSE 200, BSE 500, Sensex Next 50 and sector indices such as BSE Teck and BSE Carbonex.
BSE 100 index would see Apollo Hospitals Enterprise, Bajaj Finserv, Bharat Electronics, Container Corp Of India, Havells India, IDFC, MRF, Petronet LNG, Pidilite Industries, Piramal Enterprises, Shree Cement replace Bank of India, Federal Bank, GMR Infrastructure, Hindustan Zinc, Housing Development & Infrastructure, IDBI Bank, Jindal Steel & Power, Reliance Communications, Reliance Power, Union Bank of India, United Spirits.
S&P BSE Sensex Next 50 would see ABB India, Bharat Electronics, Canara Bank, IDFC Bank and SAIL replace Bajaj Holdings, GSK Consumer Healthcare, Oil India, Oracle Financial Services Software and Reliance Communications.