Saturday, June 18, 2011

Changes in Sensex constituents

Just read the news that two of the BSE Sensex stocks that have been real laggards are going to be replaced. This should come as a blessing for the bulls. Without any change in the macro environment, the Sensex will be able to recover some badly lost ground.
In this post written a couple of months ago, I had written: 'Dropping Rel. Comm. and Rel. Infra. from the index would not hurt either.' Those are the two stocks that are being replaced by Sun Pharma and Coal India. Expect a spurt in the prices of the two new entrants as index funds will be forced to replace the two ADAG stocks.
The bad news? The changes will come into effect only from Aug '11.

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