Financials to Overshadow Drugmakers in India's Revamped Sensex

An employee monitors securities on a computer monitor at a brokerage firm in Mumbai, India, on Tuesday, Aug. 25, 2015. Indian stocks advanced in volatile trading a day after the benchmark gauge plunged the most in six years, as banks helped counter declines in software exporters.
Photographer: Dhiraj Singh/Bloomberg

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December 15, 2017 at 3:33 AM EST

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While equity investors will likely wake up on Monday to see Prime Minister Narendra Modi firming his hold on India’s politics, there’s something else they should look out for: The reshuffle of the main equity index.

Lenders and financial-services companies will lead the revamp with IndusInd Bank Ltd. and Yes Bank Ltd. replacing drugmakers Cipla Ltd. and Lupin Ltd. in the S&P BSE Sensex in a rejig that will lift financials’ weight to 40 percent. The number has not only doubled from 2009, but also exceeds the combined weighting of technology, consumer and automakers, according to Motilal Oswal Securities Ltd.

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