Mumbai: Shares of Wipro on Thursday fell by over 3 percent after India Index Services and Products Ltd, an NSE-Crisil joint venture that maintains Nifty index, said the IT major would be removed from the index from April 1, 2013.
Reacting to the news, shares of the company fell by 3.19 percent to Rs 396.50 on the BSE.
At NSE also, the stock lost 2.94 percent to Rs 397.40.
India Index Services and Products Ltd had yesterday said Wipro and Siemens would be replaced by IndusInd Bank and state-run NMDC on the 50-share benchmark index with effect from April 1, 2013.
Shares of Siemens, too, plunged 3.13 percent to Rs 585.65, its 52-week low on NSE.
"A corporate action like our demerger of a listed company would generally result in a short-term withdrawal of the scrip from the index as it has been happening in the past where such corporate action had been initiated.
"We expect restoration of the same on completion of the corporate action, which we expect to conclude in the next few months," Bangalore-based Wipro said in a statement.
In November last year, the Wipro board had approved the demerger of the non-IT businesses -- Wipro Consumer Care & Lighting (including furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and Medical Diagnostic Product & Services business -- into a privately- held company to be named 'Wipro Enterprises Ltd'.