The shares of metal and mining firms Vedanta and Hindalco Industries came under selling pressure on Monday following the BSE's announcement last week that the stocks would no longer be part of the 30-share Sensex from December 21.
On Monday, Hindalco closed lower by 3.8 per cent at Rs 74.35 a share after shedding as much as 4.5 per cent during intra-day trades, while Vedanta shares slid 2.9 per cent to Rs 90.45 apiece. “Since there are many domestic and overseas funds that invest only in the index, there is bound to be selling pressure on scrips that go out of the index,” said Satish Menon, executive director, Geojit BNP Paribas.
The reconstitution is part of the BSE's semi-annual exercise to rejig its benchmark indices. Tata Steel is the only metal and mining firm that is still a part of the Sensex.
The shares of Adani Ports and Special Economic Zone and Asian Paints, which will become part of the Sensex from December 21, edged higher on Monday. Adani Ports gained 2.5 per cent to end at Rs 276.5 a share, while Asian Paints surged 2.9 per cent to Rs 850.7.
In the past year, market capitalisation of Vedanta and Hindalco has eroded by Rs 42,000 crore and Rs 16,000 crore, respectively. Hindalco's total debt rose Rs 3,711 crore to Rs 68,467 crore at the end of FY15 from a year ago, while Vedanta's debt dropped Rs 2,813 crore to Rs 77,752 crore in the same period.