BSE Sensex Rejig: IndiGo To Enter Benchmark Index From Dec 22, Tata Motors PV To Exit

InterGlobe Aviation and Tata Motors Passenger Vehicles (TMPV) will be in focus when markets reopen on December 22, as the latest rejig of BSE indices comes into effect following the exchange’s semi-annual review. The changes, announced by BSE Index Services, will be implemented from the opening bell on December 22, 2025, and are expected to trigger portfolio realignments by passive funds tracking these benchmarks.

At the headline level, InterGlobe Aviation, the operator of IndiGo, will enter the 30-share BSE Sensex. The airline operator’s entry will remove Tata Motors Passenger Vehicles from the 30-share benchmark index. The move is also likely to result in incremental inflows from index-linked funds and exchange traded funds (ETFs) that mirror the Sensex.

TMPV’s exit from the Sensex comes after its recent demerger, under which Tata Motors carved out its passenger vehicles business into a separately listed entity. Post-demerger, TMPV’s free-float market capitalisation and trading volumes were materially affected. 

As a result, TMPV no longer met the eligibility criteria required for continuing in the benchmark index. Index providers adjust constituents after events like demergers to ensure the index stays investible and reflective of the market.

Beyond the Sensex, several other frontline indices will also see changes. In the BSE 100, IDFC First Bank will be added, while Adani Green Energy will be excluded. The BSE Sensex 50 will see Max Healthcare Institute enter the index, replacing IndusInd Bank. 

Correspondingly, IndusInd Bank will move to the BSE Sensex Next 50, while Max Healthcare will exit that index. IDFC First Bank will also be added to the Sensex Next 50, replacing Adani Green Energy.

The BSE 500, a key gauge of India’s equity market, will see 32 additions and 32 deletions in the upcoming review. These changes are part of the routine reconstitution process based on factors, such as average market capitalisation, free-float, trading turnover, and liquidity over a defined review period. Stocks entering or exiting the BSE 500 often see short-term price and volume action due to rebalancing by institutional investors.

Sectoral and thematic indices are also set for reconstitution. The BSE Bankex will add Canara Bank, AU Small Finance Bank, Punjab National Bank and Union Bank of India from December 26. Other indices scheduled for adjustments include the BSE Sensex Next 50, BSE Sensex 60, and several factor-based and sector-specific indices.

Market participants typically keep a close eye on such index reshuffles, as inclusions often attract passive fund inflows, while deletions typically trigger short-term selling.