Sixteen months after the release of Hindenburg Research Report, which led to a sharp fall in the stock prices of all Adani Group companies, one the key firms of the group - Adani Ports and Special Economic Zone (APSEZ) has now made into the coveted list of 30 companies that form the BSE Sensex.
The company is the first Adani Group firm to be included in the Sensex ever. However, the group’s flagship firm Adani Enterprises and Adani Ports have been part of the NSE’s Nifty 50 for the past many months.
As per the reconstitution of S&P BSE indices, announced by Asia Index Pvt Ltd (AIPL), APSEZ will replace Wipro in the 30-share Sensex with effect from June 24.
In January 2023, the US- based Hindenburg Research accused the Gautam Adani led ports-to-energy conglomerate of stock manipulation and accounting fraud, which the company has denied. The report resulted in a massive fall in the market capitalization of listed companies of the group. Their share prices also tanked in the 20-80 per cent range a month after the release of the Hindenburg report.
However, the stock prices of all the Adani Group companies have now erased losses caused by the Hindenburg report. For instance, shares of Adani Ports traded nearly 84 per cent above the January 23, 2023 level, a day prior to the release of Hindenburg report.
BSE has laid down certain norms for inclusion of companies into S&P BSE SENSEX. They are being included among the top 75 companies based on their average three-month float or total market cap. The Sensex constituents should have a minimum free-float market cap of 0.50 per cent after market cap and liquidity criteria are met. The Sensex undergoes a biannual reconstitution in June and December each year
