Vedanta ends 3% lower after Sensex rejig, Dr Reddy's up 1%

Shares of Vedanta ended with a nearly 3 per cent loss on BSE as the 30-share Sensex rejig came into effect today.

Under the reconstitution, Vedanta has entered the benchmark index, while Dr Reddy's Labs has exited.

Vedanta shares fell by 2.70 per cent to end at Rs 232.30 on BSE. During the day, it lost 4.16 per cent to Rs 228.80 -- its 52-week low.

The stock was the biggest loser in the metals pack on BSE, which turned negative on increasing concerns over a full-fledged trade war between the US and China, after Donald Trump on Friday slapped a 25 per cent tariff on USD 50 billion worth of Chinese goods.

Meanwhile, shares Dr Reddy's Labs reversed early losses and ended 1.24 per cent higher at Rs 2,380.25. During the day, the stock fell 2.59 per cent to Rs 2,290.

With the exclusion of Dr Reddy's Labs and due to the significant underperformance of the sector over the last two years, weightage of healthcare in the index will now be at an eight-year low, broking firm Motilal Oswal said last week in its India Strategy report.

Sun Pharma has a weightage of 1.7 per cent and will now be the only healthcare stock in the benchmark index, the report added.

With inclusion of Vedanta in the benchmark, metal sector weight will increase to 2.6 per cent, the report had said.

The reconstitution in BSE indices was announced on May 18.