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  • Wipro Plunges On Exit From Nifty 0 comments
    Feb 22, 2013 1:27 AM

    Shares of India's third largest software exporter Wipro Ltd fell nearly 3 per cent in the early trade on Bombay Stock Exchange after reports that the IT major will be removed from benchmark index Nifty from April 1.

    India Index Services & Products Ltd, an NSE-Crisil joint venture that maintains Nifty index, on Wednesday announced that IT major Wipro and diversified group Siemens will be dropped from the 50-share benchmark index from April 1 to be replaced by IndusInd Bank and NMDC.

    At 09:50 hours on Feb14, shares of the company were trading at Rs 398.95 a piece, down 2.6 per cent from previous close on BSE.

    Wipro's, India's third largest software exporter's, exclusion came as a surprise to the street and experts said that the stock may face some selling pressure due to portfolio realignment. The company has been replaced by NMDC which enjoys the highest market cap among mining companies. Moreover, the company has also been replaced at the CNX IT Index by a lesser known company Infotech Enterprise. Wipro has also been removed from the CNX Service Index, the CNX 100 Index, the CNX 200 Index and the CNX 500 Index.

    The software exporter said that the exclusion from Nifty was linked to its demerger process. "A corporate action like our demerger of a listed company would generally result in a short term withdrawal of the scrip from the index as it has been happening in the past where such corporate action had been initiated. We expect restoration of the same on completion of the corporate action, which we expect to conclude in the next few months," the company said in a press statement.

    Source - Wipro

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