BSE will reshuffle the Sensex from December 22, adding InterGlobe Aviation (IndiGo) to the 30-stock benchmark while removing Tata Motors Passenger Vehicles after the group’s demerger. Changes span other indices too, including Sensex 50 and Sensex Next 50, reflecting evolving sector weights and liquidity profiles across India’s equity landscape.
India’s oldest bourse announced a benchmark rejig: InterGlobe Aviation, parent of IndiGo, will enter the 30-share Sensex on December 22, replacing Tata Motors Passenger Vehicles. The move follows Tata Motors’ demerger, prompting index recalibration to maintain representativeness and tradability across sectors and market caps.
Beyond the headline swap, BSE Index Services detailed coordinated changes across broader indices to align with methodology and liquidity criteria, signaling the growing prominence of aviation and changing auto-sector composition post restructuring.
Major takeaways
Sensex addition: InterGlobe Aviation (IndiGo) joins the benchmark from December 22, enhancing airline sector visibility in the index.
Sensex exit: Tata Motors Passenger Vehicles is dropped, contextualized by the company’s recent demerger structure.
Broader rejig: IndusInd Bank and IDFC First Bank to feature in Sensex Next 50; Max Healthcare added to Sensex 50 as part of methodology-driven updates.
Methodology focus: Changes reflect free-float market cap, sector balance, and liquidity screens used in index reconstitution.
Notable updates
Effective timing: All changes take effect at market open on Monday, December 22, ensuring orderly portfolio transition for index trackers.
Market impact: Passive funds and ETFs tracking BSE benchmarks will rebalance, potentially influencing short-term flows into incoming constituents.
Conclusion: The Sensex reshuffle underscores India’s dynamic market structure. IndiGo’s inclusion and Tata Motors PV’s removal mirror post-demerger realities and sector evolution, while coordinated adjustments across indices aim to keep benchmarks investable, liquid, and representative of the economy’s growth engines.
Sources: Moneycontrol; Rediff/PTIRediff Money; The Hindu BusinessLine; NDTV Profitndtvprofit.com