Mumbai: Tata Motors is once again facing the possibility of being excluded from the 30-stock Sensex index after its recent demerger. With the separation of its commercial vehicle business, the company’s total market capitalization has been divided. The commercial vehicle division now carries a market cap of Rs 1.19 lakh crore, while the passenger vehicle division stands at Rs 1.37 lakh crore.
Although Tata Motors is one of the original components of the Sensex, it has been excluded before, showing that its position in the index is not guaranteed.
IndiGo’s Parent Firm Could Enter the Index
According to a Business Standard report, the upcoming December review may see Tata Motors exit the Sensex. In its place, InterGlobe Aviation, the parent company of IndiGo and India’s largest airline, could be added to the index. InterGlobe Aviation currently has a market cap of Rs 2.27 lakh crore, making it a strong contender for inclusion.
The official announcement for the December reshuffling is expected in the next few days. Tata Motors was previously removed from the Sensex in December 2019 and re-entered in December 2022.
Sensex History and Stock Movements
Launched on January 1, 1986, the Sensex has seen numerous changes over the decades. Out of the original 30 stocks, only Reliance Industries, Hindustan Unilever, and ITC have remained consistently. Companies like Larsen & Toubro, Tata Steel, Tata Motors, and Mahindra & Mahindra have undergone multiple entries and exits.
Recently, Nestlé was removed from the index in June. On Tuesday, Tata Motors’ passenger vehicle stock fell sharply, plunging 7.3 percent during intraday trade, before closing 4.83 percent lower at Rs 372.7.
The December review will determine whether Tata Motors remains part of India’s most-watched benchmark index—or makes way for IndiGo’s soaring market presence.
