India’s benchmark S&P BSE Sensex index got rejigged on Monday with Yes Bank and IndusInd Bank joining the index. With scrips of two more banks joining the index, now Sensex will be dominated by bank stocks such as India’s most valuable lender HDFC Bank, nation’s largest lender State Bank of India and another prominent private lender ICICI Bank. Earlier in June 2017, Kotak Mahindra Bank got an entry into index while Axis Bank was included in December 2013. The shuffling in the index was announced by Asia Index, a joint venture between S&P Dow Jones Indices LLC and BSE. The move is a part of Asia Index’s semi-annual reconstitution results. With regard to the latest shuffling in Sensex, we take a look at other 29 stocks of Sensex.
With the inclusion Yes Bank and IndusInd Bank, Sensex is now dominated by bankers with as much as seven banking stocks in Sensex including HDFC Bank, State Bank of India, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank and IndusInd Bank. Among these, HDFC Bank is the market cap leader followed by State Bank of India, Kotak Mahindra Bank and Axis Bank.
The automobile sector has the second-largest number of scrips in Sensex with Maruti Suzuki India, Tata Motors, Tata Motors DVR, Hero MotoCorp, Bajaj Auto and Mahindra & Mahindra. Among the auto stocks, Tata Motors DVR is first of a kind share which was included in Sensex along with Kotak Mahindra Bank in June 2017.
The FMCG (fast moving consumer good) space in Sensex has only two stocks, ITC and Hindustan Unilever.
With the exclusion of Cipla and Lupin, Sensex has left with only two pharmaceutical stocks, Dr Reddy’s and Sun Pharma.
Amid the IT companies, Sensex has India’s three big software giants Tata Consultancy Services, Infosys and Wipro.
From the telecommunication sector Sensex is dominated by India’s Biggest telecom service provider Bharti Airtel.
Financial services Stock
From the financial services deck, Sensex has India’s most valuable and perhaps the largest housing finance firm HDFC.
Amid the metal stocks, there is only one scrip in Sensex, Tata Group’s age-old enterprise Tata Steel. Earlier in 2015, Vedanta and Hindalco were there in Sensex from metals and mining sector.
The scrip of Reliance Industries is one such kind which is not specific to any sector. The oil-to-telecom conglomerate Reliance Industries has been in Sensex for many years and has the largest market capitalisation among all Indian listed companies.
There are four public sector enterprise stocks in Sensex including Power Grid, NTPC, ONGC and Coal India. ONGC, Power Grid, and NTPC can be broadly classified as energy stocks. Coal India is the largest coal manufacturer in the world.
Under the Infrastructure space, there are two scrips in Sensex namely L&T, Adani Ports and Special Economic Zone. L&T is one of the biggest construction and engineering giant while Adani Ports is India’s largest multi-port operator.
Asian Paints is the only stock from chemical sector. Asian Paints got an entry in Sensex along with Adani Ports in 2015 when stocks of Hindalco and Vedanta were dropped from the index.
Apart from the shuffling in BSE Sensex, few changes are also made in other indices too. In the BSE 100, the index of top 100 listed companies, Federal Bank, Grasim Industries, Vakrangee and Bajaj Holdings & Investment will be added while United Breweries, Steel Authority of India, Canara Bank and Reliance Infrastructure will see an exit from the index. Besides these, changes have also been announced in Sensex 50, Sensex Next 50, BSE 200 and BSE 500 indices respectively.