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Shares of Vedanta and Dr Reddy’s Labs fell up to 4 per cent on the BSE as the 30-share Sensex rejig came into effect today. Under the reconstitution, Vedanta has entered the benchmark index, while Dr Reddy’s Labs has exited the index.
After opening the day on a weak note, Vedanta further fell by 4.16 per cent to Rs 228.80 -- its 52-week low -- as trade progressed on the BSE.
The stock was also among the biggest losers in the metals pack on the BSE, which turned negative on increasing concerns over a full-fledged trade war between the US and China, after Donald Trump on Friday slapped a 25 per cent tariff on $50 billion worth of Chinese goods.
Meanwhile, shares Dr Reddy’s Labs too declined 2.59 per cent to Rs 2,290 on the BSE. 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 had said last week in its India Strategy report.
Sun Pharma has a weightage of 1.7 per cent and will now be the only healthcare stock in the benchmark index. With the inclusion of Vedanta in the benchmark, metal sector weight will increase to 2.6 per cent, the report had said.
The reconstitution in BSE indices was announced on May 18.
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