Tata Motors Sensex drop: InterGlobe Aviation, the company that runs IndiGo, will soon join the main BSE Sensex list. The change will take effect on December 22 when the market opens. The update comes from BSE Index Services, and it shows a major shift in the country’s most important stock index. Tata Motors Passenger Vehicles Ltd will move out of the 30 stock list.
Changes Across Many BSE Indexes
The changes do not stop with the Sensex alone. The BSE 100 index will also see a new entry as IDFC First Bank Ltd replaces Adani Green Energy Ltd. In the BSE Sensex 50 list, Max Healthcare Institute Ltd will enter while IndusInd Bank Ltd will leave. The Sensex Next 50 will also shift, with IndusInd Bank and IDFC First Bank filling the spots of Max Healthcare Institute Ltd and Adani Green Energy.
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These updates come as part of the December reshuffle done every year. The official note says the changes will begin from Monday, December 22.
Tata Motors Faces Pressure
Tata Motors is once again under the spotlight because the company split its commercial vehicle business from its passenger vehicle business. After this split, the market cap of the commercial unit stands at Rs 1.19 lakh crore, and the passenger unit is at Rs 1.37 lakh crore. This split reduced its total value, and that makes its Sensex position weeaker.
The company is one of the oldest Sensex members, but its place has never been fully safe. It was even removed in December 2019 and came back only in December 2022. Now the December review will decide its fate again.
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A report earlier said that the December review may bring InterGlobe Aviation into the Sensex. The report stated that IndiGo’s parent has a strong market cap of Rs 2.27 lakh crore and is a top contender for the index. If this happens then it will mark another rise for the fast-growing airline company.
Market Reaction And Recent Movements
Tata Motors’ passenger vehicle stock saw a sharp fall this week. It dropped 7.3% during the day and then ended the session 4.83% lower at Rs 372.7. Nestle was also removed from the Sensex in June, which shows how often the index changes based on performance and size, reported FPJ.
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The Sensex began on January 1, 1986, and over the years many companies have entered and left. Only a few old names like Reliance Industries, Hindustan Unilever, and ITC have stayed in the list from the start.
Many others like Tata Motors, Tata Steel, Larsen & Toubro, and Mahindra & Mahindra have gone through several entries and exits.
