In an official release, Bombay Stock Exchange has removed Dr. Reddy’s Laboratories Ltd from Benchmark Sensex. Real Estate major DLF will replace the pharmaceutical company from November 19th this year. DLF stock is fundamentally very strong and the company has become a major player in stock markets.

DLF came out recently with its Initial Public offer. The stock was down in today’s markets as the stock exchange was very weak since opening trade. DLF is among majors companies in stock market in terms of overall market valuations.

Dr Reddy’s has been an under-performer in recent times. Dr. Reddy’s was having very strong fundamentals, but the company lost its value after legal battles for drug patents. Dr. Reddy’s may lose some ground. The stock has recently touched its 52-week low.

The move will be good for DLF as there are many Funds which are based on Sensex stocks. Many funds will increase their holding in DLF Limited and this may result in fresh buying in the stock. DLF was down by Rs 20 during first hour of trade today.