IndiGo will join Sensex in December as Tata Motors’ PV business makes way

The parent company of India’s largest airline, InterGlobe Aviation, operator of the IndiGo airline, will replace Tata Motors Passenger Vehicles in the 30-share Sensex benchmark opening on Monday, December 22. The stock market index manager, BSE Index Services, announced the changes on Saturday as part of a broad overhaul of its flagship and satellite indices.Along with the change in Sensex, there will be a series of adjustments for other major indices.

The BSE 100 index will include IDFC First Bank Ltd, replacing Adani Green Energy Ltd. Within the BSE Sensex 50, Max Healthcare Institute Ltd will be added, while IndusInd Bank Ltd will be removed.

Meanwhile, IndusInd Bank and IDFC First Bank will replace Max Healthcare Institute Ltd and Adani Green Energy in the BSE Sensex Next 50 index, the announcement said.

The inclusion of InterGlobe Aviation by Sensex reflects growing market interests, while the exit of Tata Motors PV follows the separation from Tata Motors following a recent demerger. The corporate restructuring changed the position of Tata Motors Passenger Vehicles within the benchmark and paved the way for the entry of InterGlobe Aviation.

Such rebalancing ensures that the index remains representative of the evolving Indian market landscape. The change will also lead to mandatory rebalancing by index funds and exchange-traded funds that mirror the Sensex and related BSE indices, which will trigger mechanical buying and selling as portfolios realign with the new composition. The December 22 reshuffle marks a notable transition in India’s stock benchmark, where aviation is replacing cars and corporate restructuring is making way for new market leadership at the top of Dalal Street.

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