HDFC will be replaced by JSW Steel in BSE SENSEX from 13th July 2023.
Why is HDFC being Kicked out of BSE SENSEX?
JSW Steel Ltd is set to replace Housing Development Finance Corporation (HDFC) in the 30-share S&P BSE Sensex on July 13. This change comes as a result of HDFC merging with HDFC Bank. Asia Index Pvt Ltd, a joint venture between S&P Dow Jones Indices LLC and BSE, announced the replacement of HDFC with JSW Steel in the Sensex. As a consequence of the amalgamation, there will be alterations in other S&P BSE indices as well. In the S&P BSE 500, JBM Auto Components Ltd will take the place of HDFC, while in the S&P BSE 100, Zomato will be included instead of the mortgage lender. Similarly, Apollo Hospitals Enterprise Ltd will replace HDFC in the S&P BSE Sensex 50.
Meanwhile, JSW Steel has committed to investing $145 million to enhance its manufacturing operations in the USA. Despite the merger, analysts caution that the stock of HDFC Bank may remain relatively stagnant. Jindal Steel and Power has noted an increase in inquiries from European buyers, while Fitch has expressed a positive outlook for Tata Steel and a stable outlook for JSW Steel.
On another note, LTIMindtree Ltd will replace Housing Development Finance Corporation Ltd in the Nifty 50 index on July 13. HDFC, the parent company of HDFC Bank, merged into the bank on Saturday. This USD 40-billion merger marks the largest deal in the history of Indian corporate mergers. The decision is primarily driven by regulatory changes that limited the advantages for HDFC to continue operating as a non-bank lending entity.
If you’re interested in such amazing financial news, while trading in the live market. Get a Free Demo of Spider Software and enjoy live news with live buy and sell signals on your screen.
