Tata Motors, the oldest continuously listed stock in the BSE Sensex, is facing a potential removal from the prestigious 30-share index following its planned demerger. The automotive giant's proposal to split into two separate publicly listed companies, one for commercial vehicles and another for passenger vehicles, has created uncertainty about its future in the benchmark index.According to analysis by Nuvama Alternative and Quantitative Research, this strategic demerger puts Tata Motors' position at risk. If the company is removed, aviation giant InterGlobe Aviation, the parent company of IndiGo, is considered the frontrunner to take its place. This projection is based on IndiGo's strong market performance and eligibility. As of the latest data, IndiGo ranks 32nd in the list of eligible companies for Sensex inclusion.The potential reshuffle is anticipated to occur in the second half of 2025. Tata Motors has been a constituent of the Sensex since December 1993, making it the longest-standing member among the current stocks. A potential exit would mark the end of an era for one of the index's original mainstays.The demerger, which was approved by the Tata Motors board in March, aims to unlock value and provide a more focused strategy for both the commercial and passenger vehicle segments. While strategically beneficial for the company, this move could trigger a significant change in the composition of India's most-watched stock market index.
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