The upcoming Sensex rebalancing in December represents a significant shift in India’s marquee index composition, reflecting evolving market dynamics and sector performance. For investors, these changes signal crucial portfolio adjustment opportunities and underscore the importance of staying aligned with index modifications that can impact liquidity, fund flows, and overall market sentiment.
Following is a list of stocks that will get affected by sensex rebalance in December:
1. Zomato:
Zomato, founded in 2008 by Deepinder Goyal and Pankaj Chaddah, is a leading food delivery and restaurant aggregation platform operating in over 1,000 cities worldwide. The company went public in 2021, achieving a valuation exceeding $8 billion, and continues to innovate with services like Zomato Gold and Hyperpure.
Zomato’s inclusion in the Sensex underscores the growing significance of tech-driven companies. The stock is projected to attract inflows of $513 million with an average volume impact of 2.6x, as per brokerage firm Nuvama. Over the past year, Zomato’s share price has surged by 126%, boosting its market capitalisation to Rs. 2.72 lakh crore.
2. JSW Steel:
Established in 1994, JSW Steel is a prominent steel manufacturer in India with a production capacity of over 18 million tons annually. Known for sustainable practices and innovation, the company remains a significant global player despite recent adjustments in its Sensex portfolio weightage.
JSW Steel will exit the Sensex, leading to estimated outflows of $252 million and an average volume impact of 11.8x, according to Nuvama. Despite delivering a 9% return over the past year, its market capitalisation of Rs. 2.24 lakh crore has been eclipsed by Zomato.
3. Mahindra & Mahindra:
Founded in 1945, Mahindra & Mahindra is a key name in the Indian automotive industry, producing SUVs, commercial vehicles, and tractors. The company also has a diverse portfolio in sectors like aerospace and agribusiness, supported by its “Rise for Good” sustainability initiative.
Mahindra & Mahindra will see its Sensex weight reduced, resulting in $77 million in outflows and a modest average volume impact of 0.6x, as reported by Nuvama. Despite this adjustment, the automotive leader remains a key player in its sector.
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4. ITC Limited:
ITC, established in 1910, is a diversified conglomerate with interests in FMCG, hotels, packaging, and agribusiness. Known for iconic brands like Sunfeast and Gold Flake, ITC maintains a strong market presence despite recent shifts in investor sentiment.
ITC’s weight reduction in the Sensex will result in $9 million in outflows, with an average volume impact of 0.1x, according to Nuvama. The diversified conglomerate continues to attract strong investor interest despite this minor adjustment.
5. Infosys:
Founded in 1981, Infosys is a global leader in IT services, providing cutting-edge digital solutions to clients worldwide. Headquartered in Bengaluru, the company is a cornerstone of India’s tech industry and continues to drive innovation in digital transformation.
Infosys, a prominent player in India’s IT sector, will experience a slight reduction in its Sensex weight, causing $16 million in outflows with an average volume impact of 0.1x, as per Nuvama. The company remains a cornerstone of the index, reflecting its resilience and prominence in the tech industry.
6. Sun Pharma:
Established in 1983 by Dilip Shanghvi, Sun Pharma is one of India’s largest pharmaceutical companies, specialising in generic drugs and APIs. With a strong global footprint in over 100 countries, the company focuses on innovation, particularly in speciality drugs, to enhance global healthcare.
Sun Pharma’s weight adjustment in the Sensex will lead to $4 million in outflows and an average volume impact of 0.1x, according to Nuvama. Despite this minor reduction, the pharmaceutical giant continues to play a crucial role in India’s healthcare and stock market landscape.
Written By Fazal Ul Vahab C H
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