JSW Steel shares took a hit after Asia Index Private Ltd, a wholly-owned subsidiary of BSE, announced that the company would be excluded from the BSE Sensex as part of the index reconstitution. The changes, effective from December 23, 2024, will see food delivery giant Zomato replacing JSW Steel in the 30-stock benchmark index.
As of 9:32 am the shares were trading 1.25% lower at ₹965.10
Zomato’s inclusion comes after an impressive performance, with its stock delivering 130% returns over the past year, significantly outpacing the BSE Sensex’s 12-month return of 20%. In comparison, JSW Steel shares have offered a 27% return in the same period, which, while positive, fell short of Zomato’s meteoric rise.
The index reconstitution also included adjustments to other indices, such as the BSE 100, BSE Sensex 50, and BSE Sensex Next 50. Zomato’s addition to the Sensex underlines its growing market presence and strong investor confidence, making it one of the standout performers in the past year.
Investors in JSW Steel will now turn their attention to how the exclusion impacts the stock’s future performance, as changes in index constituents can often lead to adjustments in institutional holdings.
