Vedanta's weight in key indices to rise on Cairn India buyout

Vedanta's weight in key indices is likely to rise post Cairn India buyout. The company has made a bid of $2.3 billion to buy out minority shareholders in the oil and gas major.

A larger free float due to likely reduction in promoter holding to 50.1 per cent, compared with 62.9 per cent as of March 31, may help the stock gain weightage in the key benchmark indices.

"Vedanta's weightage in BSE index will likely go up to 1.5 per cent against 0.9 per cent at present," Axis Capital said in a note.

Shares of Cairn India closed at Rs 187.60, up 3.79 per cent against its previous close. However, Vedanta shares ended 1.49 per cent down at Rs 181.25.

The BSE Sensex jumped 0.61 per cent to 26,586.55 on Monday.

(Reuters)