Shares of metal and mining firms Vedanta and Hindalco Industries, came under selling pressure on Monday following BSE's announcement last week that the stocks will no longer be part of the 30-share Sensex from December 21.
Hindalco closed lower by 3.8% to Rs 74.35 after shedding as much as 4.5% intraday, while Vedanta slid 2.9% to Rs 90.45 on Monday. "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.
Source: http://www.business-standard.com/article/markets/vedanta-hindalco-slip-over-exit-from-sensex-115112300733_1.html
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My take on this - I am not surprised. Over a period of time, expect some good stocks to be removed from key indices. Other stocks on the chopping board - Tata Steel, Tata Power etc.
Hindalco closed lower by 3.8% to Rs 74.35 after shedding as much as 4.5% intraday, while Vedanta slid 2.9% to Rs 90.45 on Monday. "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.
Source: http://www.business-standard.com/article/markets/vedanta-hindalco-slip-over-exit-from-sensex-115112300733_1.html
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My take on this - I am not surprised. Over a period of time, expect some good stocks to be removed from key indices. Other stocks on the chopping board - Tata Steel, Tata Power etc.
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