Vedanta, Dr Reddy’s shares fall up to 4% following Sensex rejig
With the exclusion of Dr Reddy’s Labs and due to the significant underperformance of the sector over the last two years, weightage of healthcare in the index will now be at an eight-year low, brokerage house Motilal Oswal said.business Updated: Jun 18, 2018 14:58 IST
Shares of Vedanta and Dr Reddy’s Labs fell up to 4% on BSE as the 30-share Sensex rejig came into effect on Monday.
Under the reconstitution, Vedanta has entered the benchmark index, while Dr Reddy’s Labs has exited the index.
Vedanta, after opening the day on a weak note, further fell by 4.16% to Rs 228.80 intraday -- its 52-week low -- as trade progressed on the BSE. At 2.46 pm, however, the stock was trading 2.22% lower at Rs 233.45.
The stock was also among the biggest losers in the metals pack on BSE, which turned negative on increasing concerns over a full-fledged trade war between the US and China, after Donald Trump on Friday slapped 25% tariffs on $50 billion worth of Chinese goods.
Meanwhile, shares Dr Reddy’s Labs too declined 2.59% to Rs 2,290 on the BSE intra-day.
With the exclusion of Dr Reddy’s Labs and due to the significant underperformance of the sector over the last two years, weightage of healthcare in the index will now be at an eight-year low, broking firm Motilal Oswal said last week in its India Strategy report.
Sun Pharma has a weightage of 1.7% and will now be the only healthcare stock in the benchmark index, the report added.
With the inclusion of Vedanta in the benchmark, metal sector weight will increase to 2.6%, the report had said. The reconstitution in BSE indices was announced on May 18.
First Published: Jun 18, 2018 14:58 IST