Adani Group to Replace Wipro in Sensex, A Major Victory for The Global Conglomerate

Introduction:

Adani Enterprises Limited is set to replace Wipro in the key Sensex index, as per Adani’s latest news. This is being done as a part of the routine reshuffling exercise for S&P BSE indices. Adani Enterprises will soon join Sensex, and Wipro will be out. IIFL Alternative Research has also mentioned that in BSE100, there will be five additions and deletions this year. Adding Adani Enterprises to the list will be a milestone for the global conglomerate led by the Adani Group. It will lead the Group on the path to success and encourage the firm to take up more extensive projects like the Adani Bangladesh project.

Adani’s Entry in The Sensex Index:

This is the first time an Adani Group company will find a place in the 30-share BSE pack. This will give the Adani Group a new benchmark and streamline its business operations. The Adani Group will find drawing investors towards its various projects easier. Its business operations will also experience an excellent boost in the global market scenario. As per IIFL Alternate Research, Adani Enterprises’ inclusion in Sensex will draw in investments of over 118 million USD from the passive funds that are responsible for tracking the index. Wipro is also expected to have outflows worth 56 million USD because of this inclusion.

Both Wipro and Adani Group are already a part of the Nifty index. In the prior reshuffle on December 19, 2023, Tata Motors replaced the Pharmaceutical firm Dr Reddy’s Laboratories. The brokerage house has also brought to the notice that the BSE100 index is expected to experience five new additions and deletions. Jio Financial Services, REC, Adani Green Energy, Adani Power, and Adani Energy Solutions will be replacing ICICI Prudential Life Insurance Company, Zee Entertainment Enterprises, Page Industries, SBI Cards and Payment Services, and Jubilant FoodWorks. This is indeed a huge milestone for the Adani Group of Companies.

Adani Group’s Recovery in The Stock Market:

The businesses operating under the Adani Group had suffered many challenges over the past few years, especially after the Hindenburg report was published, accusing the Adani Group of account fraud and stock manipulation. Because of this crisis, the Adani Group’s shares dropped down consistently. However, the business group has strongly denied the allegations and continued working on various projects, including the Adani Bangladesh project. Finally, the Supreme Court dismissed the charges against the Adani Group, which caused the conglomerate to get back to its original situation. The share values have also started to rise dramatically since then. 

The shares of Adani Enterprises rose drastically during the past week. It gained 8.58% to reach a 52-week high of INR 3409.05 on 23 May 2024. Around 3.3% of shares have changed on the BSE, sharply crossing the two-week average volume of 1.05 lakh shares. The turnover of the day was extraordinary. It stood at a value of INR 111.85 crores, which contributed to a huge market capitalisation amounting to INR 3,86,597.18 crores. The Adani Ports witnessed a rise of 4.72%, while Adani Power’s shares increased by 2.79%.

The Reasons Behind the Improvement in Share Values:

The major rise in shares mainly contributed to the numerous ventures taken up by the Adani Group in its business sectors, including the Adani Bangladesh project. These projects have been really profitable for the Adani Group. Presently, the conglomerate is working on developing the largest renewable energy park at Khavda in Gujarat. This is an extraordinary step the Adani Group took towards enhancing its business portfolio. Other than that, the business group is also actively involved in various international projects, each of which has helped the global conglomerate diversify its portfolio and earn an excellent reputation for itself on a global scale.

Conclusion:

In this way, because of its extraordinary performance in the stock market, the Adani Group could replace major technical giants like Wipro in the Sensex. As time continues, the Adani Group will continue to show remarkable performance in the business world, causing its share values to rise. This will offer massive popularity to the global conglomerate and allow our country to reach its peak of prosperity in no time.