Adani Enterprises (ADANIENT) Set to Replace Wipro (WIPRO) on BSE Sensex: Major Index Shakeup

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  <li>Shares of Adani Enterprises, the flagship company of Adani Group, surged 7.5% to reach a new 52-week high of ₹3,377.50 apiece in today's trading session.</li>
  <li>This notable upswing came in the wake of insights provided by IIFL Alternative Research, suggesting the prospective inclusion of Adani Enterprises in the Sensex, potentially displacing Wipro from its current position.</li>
  <li>IIFL Alternative Research indicated that the inclusion of Adani Enterprises in the Sensex could lead to inflows of nearly ₹1,000 crore from passive funds tracking the index. Conversely, Wipro's exclusion is expected to result in outflows of approximately ₹500 crore.</li>
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<p><strong>Adani Enterprises hits a new 52-week high amid potential Sensex inclusion, signaling significant market movements and investor interest.</strong></p>

<h2><strong>Adani Enterprises' Potential Inclusion in Sensex</strong></h2>
<p>The Bombay Stock Exchange (BSE) is likely to announce its semi-annual index reconfiguration tomorrow, with adjustments scheduled to take effect on June 21. If Adani Enterprises is included, it will mark the first time a company from the Gautam Adani-led Adani Group being a part of the 30-share BSE index.</p>

<h3><strong>Impact on Passive Funds and Market Dynamics</strong></h3>
<p>IIFL Alternative Research indicated that the inclusion of Adani Enterprises in the Sensex could lead to inflows of nearly ₹1,000 crore from passive funds tracking the index. Conversely, Wipro's exclusion is expected to result in outflows of approximately ₹500 crore. This shift underscores the dynamic nature of market indices and the significant impact of index reconfigurations on stock movements and investor strategies.</p>

<h3><strong>Potential Changes to the BSE 100 Index</strong></h3>
<p>Additionally, IIFL Alternative Research mentioned potential changes to the BSE 100 index. Jio Financial Services, Adani Green Energy, REC, Adani Power, and Adani Energy Solutions could potentially replace Page Industries, SBI Cards and Payment Services, ICICI Prudential Life Insurance, Zee Entertainment Enterprises, and Jubilant FoodWorks. These changes reflect the evolving landscape of the Indian stock market and the increasing prominence of Adani Group companies.</p>

<h3><strong>Recent Performance and Market Capitalization</strong></h3>
<p>Meanwhile, the company's shares have rebounded sharply from their February 2023 low of ₹1,017.45 apiece, currently trading 228% higher than that level. The group's market capitalization in the previous trading session touched ₹16.9 lakh crore after its listed companies gained ₹11,300 crore as investors expressed confidence in the company amid its denial of any wrongdoing in the supply of coal to a Tamil Nadu power company.</p>

<h3><strong>Financial Performance and Allegations</strong></h3>
<p>Yesterday's gains coincided with a report from the London-based Financial Times, citing documents from the George Soros-backed Organized Crime and Corruption Reporting Project (OCCRP), which alleged that the Adani Group committed fraud in 2013 by selling low-grade coal as high-value fuel. Earlier this month, the company reported a 37% decline in the net profit for the March quarter, primarily due to input material costs more than doubling. The consolidated net profit for January–March 2023–24 stood at ₹450.58 crore, compared to ₹722.48 crore in the same period last year and ₹1,888.45 crore in the preceding quarter.</p>

<h3><strong>Annual Financial Performance</strong></h3>
<p>For the entire fiscal year 2023–24, the net profit surged 31% to ₹3,240.78 crore, despite a drop in revenue from operations to ₹96,420.98 crore from ₹127,539.50 crore in 2022–23. This performance highlights the company's resilience and ability to navigate challenging market conditions.</p>

<h3><strong>Conclusion</strong></h3>
<p>In conclusion, the potential inclusion of Adani Enterprises in the Sensex and the anticipated changes to the BSE 100 index underscore the dynamic nature of the Indian stock market. Investors should closely monitor these developments, as they could have significant implications for market movements and investment strategies. As always, it is advisable to consult with certified financial experts before making any investment decisions.</p>