Tata Motors on the verge of being delisted from the Sensex, to be replaced by…

The Sensex has played a crucial role in shaping the direction of the Indian economy and stock markets.

New Delhi: Tata Motors’ market capitalisation has fallen sharply following the split of its commercial vehicle (CV) business in October. Consequently, Tata Motors shares could be removed from the 30-share benchmark next month. InterGlobe Aviation, the parent company of the country’s largest airline, IndiGo, is likely to replace it. The December review will be announced this month, and the changes could become effective from December 19. It’s worth noting that after the split, Tata Motors’ commercial vehicle business has a market capitalisation of Rs 1.19 trillion, while Tata Motors Passenger Vehicles has a market capitalisation of Rs 1.37 trillion. In contrast, IndiGo significantly surpasses both with a market capitalisation of Rs 2.27 trillion.

How much outflow and inflow?

According to an analysis by Brian Freitas of Periscope Analytics, published on Smartkarma, if Tata Motors is excluded from the Sensex, it will suffer a passive outflow of approximately Rs 2,232 crore. Meanwhile, Indigo’s inclusion would result in an inflow of approximately Rs 3,157 crore. Freitas also indicated in his analysis that if the index committee wishes to increase the representation of the commodity segment, Grasim Industries could be another contender. If Grasim is included, it could receive a passive inflow of Rs 2,526 crore.

Launched on January 1, 1986, the Sensex has played a crucial role in shaping the direction of the Indian economy and stock markets. Of its initial 30 stocks—Reliance Industries, Hindustan Unilever, and ITC—only three remain in the index today. Tata Steel, Tata Motors, and Mahindra & Mahindra have been removed and re-included intermittently. Among the current components, Infosys and SBI have been the longest-serving Sensex constituents.

Tata Motors Passenger Vehicle Shares

Meanwhile, Tata Motors Passenger Vehicle (PV) shares fell on Monday, 17 November 2025. Following weak performance from Jaguar Land Rover (JLR) and a cut in margin guidance, the company’s PV shares fell as much as 7.3 per cent intraday to close at Rs 372.7, down 4.83 per cent from its previous close. The PV and CV units were listed separately after the split, with the PV business comprising both electric vehicles and JLR, which contributes a significant portion of the company’s profits.