Sensex brings up 41st record close of the year

The benchmark indices hit fresh record highs on Wednesday amid a rally in telecom and public sector undertaking stocks, with the Sensex notching its 41st record close of the year. The Sensex rose 476 points, or 0.8 per cent, to end the session at 58,723. The Nifty rose 139 points and ended the session at 17,519, with a gain of 0.8 per cent.

HDFC Bank and Reliance Industries (RIL) are expected to see minor churn on account of rebalancing exercise in the Sensex slated for Friday.

According to a note by IIFL Alternative Research, HDFC Bank could see buying worth $57 million, while RIL could see selling to the tune of

$11 million. Besides, Axis

Bank and Indusind Bank could see some buying, while L&T and HDFC could see selling of a few thousand shares.

The Sensex follows a free-float methodology to compute weighting of its

30 components. Experts said index providers undertake periodic rebalancing exercise to adjust for any change in free float shareholding.

Based on the changes in weightage, passive funds have to churn their holdings. Currently, the Sensex is tracked by domestic passive funds with assets of more than ~60,000 crore.