Mumbai, November 22, 2025 – The Bombay Stock Exchange (BSE) has announced a reshuffling of its benchmark Sensex index, with InterGlobe Aviation Ltd, the parent company of IndiGo, set to replace Tata Motors Passenger Vehicles Ltd (Tata Motors PV) effective December 22, 2025. This change is part of a periodic rebalancing exercise to ensure the index remains representative of India's evolving market dynamics.
The decision to drop Tata Motors PV stems from Tata Motors' demerger earlier in October, which split the company into two separate entities: Tata Motors Passenger Vehicles and Tata Motors Commercial Vehicles. This demerger led to a dilution of the market capitalization of Tata Motors PV.
Meanwhile, the inclusion of InterGlobe Aviation (IndiGo) reflects the airline's significant market presence and robust market capitalization of ₹2.1 trillion. In comparison, Tata Motors' commercial vehicles business has a market capitalization of ₹1.1 trillion, while Tata Motors Passenger Vehicles commands a market capitalization of ₹1.2 trillion.
This is not the first time Tata Motors has been removed from the Sensex. The company, a founding member of the index, was previously excluded in December 2019, before rejoining in December 2022. Of the original 30 stocks that constituted the Sensex, only three – Reliance Industries, Hindustan Unilever, and ITC – have remained uninterrupted members.
The index rejig will also affect other BSE indices. Within the BSE Sensex 50 index, Max Healthcare Institute Ltd will replace IndusInd Bank Ltd. Additionally, IDFC First Bank Ltd will be added to the BSE 100 index, replacing Adani Green Energy Ltd. IndusInd Bank and IDFC First Bank will also be included in the BSE Sensex Next 50 index, taking the place of Max Healthcare Institute and Adani Green Energy.
Index rebalancing is a crucial activity for the market, as it provides insights into the direction of fund flows. Exchange-Traded Funds (ETFs) and mutual funds that track the Sensex will need to rebalance their portfolios to align with the new index composition. This rebalancing typically begins in the days leading up to the effective date of the changes.
The exclusion of Tata Motors from the Sensex could lead to passive fund outflows of approximately ₹2,232 crore, while IndiGo may experience inflows of around ₹3,157 crore.
The Sensex, launched on January 1, 1986, serves as a bellwether for the Indian economy and equity markets. These periodic adjustments ensure that the index accurately reflects the current state and trends within the Indian stock market.
