Adani Ports (APSEZ) Joins Sensex Index, Wipro (WIT) to Exit on June 24: S&P BSE Update

<ul>
    <li>The S&P BSE announced on Friday, May 24, that it will include Adani Ports and Special Economic Zones (SEZ) in the Sensex index from June 24, 2024.</li>
    <li>The domestic benchmark will drop Wipro from the index on the same day.</li>
    <li>“Adani Ports could see inflows of $252 million after inclusion into the Sensex, while Wipro will likely witness outflows worth $161 million," said Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research.</li>
</ul>
<p><strong>Adani Ports to Join Sensex; Wipro to Exit in Major BSE Rebalancing</strong></p>
<h2><strong>Adani Ports Q4 Results</strong></h2>
<p>Adani Ports reported a consolidated net profit of ₹2,040 crore for the quarter ended March 2024, registering a growth of 76.2 per cent from ₹1,158 crore in the year-ago period. The port major's revenue from operations in Q4FY24 rose 19 per cent to ₹6,896.5 crore from ₹5,796.85 crore year-on-year (YoY).</p>
<h3><strong>Operational Performance and Future Outlook</strong></h3>
<p>At the operational level, Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the quarter increased 24 per cent to ₹4,045 crore from ₹3,273 crore, while EBITDA margin improved to 58.6 per cent from 56.4 per cent, YoY.</p>
<p>“APSEZ outperformed its upper end of guidance provided at the beginning of the financial year on cargo, revenue, and EBITDA by 6%-8%, while closing the year with net debt to EBITDA ratio of 2.3x vs its guidance of 2.5x," said Ashwani Gupta, Whole-Time Director & CEO, Adani Ports.</p>
<h3><strong>Market Reaction and Strategic Implications</strong></h3>
<p>Adani Ports' inclusion into the Sensex came on the same day when shares of Adani Enterprises - the flagship company of Gautam Adani's ports-to-power conglomerate, recovered in intraday trade to levels last seen in January 2023, before a report by US short seller Hindenburg Research triggered a sell-off, according to news agency Reuters. Two Adani Group companies - Adani Enterprises and Adani Ports are already part of the other benchmark index NSE Nifty 50 index, according to Reuters.</p>
<h3><strong>Conclusion</strong></h3>
<p>The inclusion of Adani Ports into the Sensex and the exclusion of Wipro marks a significant shift in the BSE's semi-annual rebalancing exercise. This move is expected to bring substantial inflows for Adani Ports while posing challenges for Wipro. Investors and market analysts will closely watch how these changes impact the respective stocks and the broader market dynamics.</p>