Lupin, UltraTech gain; to replace SAIL, Sterlite in NSE index

NEW DELHI: UltraTech Cement and drug maker Lupin will replace Steel Authority of India and Sterlite Industries in the main NSE index from Friday. UltraTech Cements surged over 1 per cent to hit its 52-week high of Rs 1927.80 in the afternoon trade.

Analysts say the removal of SAIL and Sterlite Industries from the NSE index underlines the negative sentiment prevailing on the materials sector even as valuations are at multi-year lows.

At 01:40, UltraTech Cements was trading 1.04 per cent higher at Rs 1900, while Lupin rose 0.7 per cent to Rs 589.60.

Shares of steel major SAIL and Vedanta group firm Sterlite Industries today fell by as much as 2 per cent ahead of moving out of the NSE’s benchmark index Nifty. SAIL was trading 1.8 per cent lower at Rs 87.60, while Sterlite Industries Ltd was down 0.8 per cent to Rs 99.85.

As per the changes announced last month by India Index Services & Products Ltd (IISL), an NSE-Crisil joint venture that maintains Nifty index, SAIL and Sterlite Industries (India) would be excluded from the 50-share benchmark index with effect from September 28, 2012.