What’s inside:
This article discusses Tata Motors’ potential exit from the Sensex, the possible replacement by IndiGo, and the market capital changes.
Tata Motors, a major player in the Sensex, might lose its spot in the list of top 30 stocks next month. This change is happening due to the recent separation of its commercial vehicle business.
With this split, Tata Motors’ market capital has also changed. The commercial vehicle division is now valued at ₹1.19 lakh crore, while the passenger vehicle segment is at ₹1.37 lakh crore. IndiGo, which operates the largest airline in India, is likely to replace Tata Motors as it has a higher market capital of ₹2.27 lakh crore.
The review for the Sensex will be announced later this month, with any changes taking effect on December 19. This means investors and market watchers should keep an eye on the updates.
Here are some important points to remember: Tata Motors has faced similar situations before, being removed from the Sensex in December 2019 due to poor performance. It was later added back in December 2022. The Sensex was launched in 1986, and only three of the original 30 stocks remain today.
In the coming weeks, we can expect the official announcement about the Sensex changes, which will clarify Tata Motors’ future in the index and whether IndiGo will step in as a new member.
Summary:
- Tata Motors may exit the Sensex next month.
- IndiGo could replace Tata Motors in the index.
- The market capital of Tata Motors has been divided after a recent split.
- The Sensex review will be announced later this month.
- Tata Motors has been removed from the Sensex before and re-added later.
