Sensex Rejig Coming Up: Tata Motors to Replace Dr Reddy, Total Inflow & Outflow?

By Malvika Gurung

Investing.com -- The periodic rejig in the benchmark equity index Sensex by the stock exchange Bombay Stock Exchange will take place on Friday, December 16, 2022.

As per the semi-annual rebalance of the 30-scrip headline index, the behemoth Tata Group stock Tata Motors (NS: TAMO ) will replace the pharmaceutical giant Dr. Reddy’s Laboratories (NS: REDY ), which will come into effect from December 19, 2022.

This means that starting Monday next week, Dr Reddy’s Labs will no longer remain a part of Sensex, while the domestic automaker Tata Motors will be the newest entrant.

As per an Investing.com report dated Nov 20, 2022, IIFL Alternative Research estimated an inflow of nearly $150 million in Sensex by the inclusion of Tata Motors, while Dr Reddy’s Laboratories was pegged to see an outflow of about $130 million.

As per a Nuvama Alternative and Quantitative Research report, TaMo’s entry could see an inflow of $124 million in the benchmark index with a weightage of 1.1%, while Dr Reddy's Labs’ exit is anticipated to witness an outflow of $90 million, having a weightage of 0.8% on the index.

Moreover, BSE also announced a reshuffle of the BSE 100 index, in which Adani Power (NS: ADAN ) and Indian Hotels (NS: IHTL ) Company will replace Adani Total Gas (NS: ADAG ) and Hindustan Petroleum (NS: HPCL ). The same changes will be made to the Sensex Next 50 index too.

The bourse has not made any changes in the indices S&P BSE Sensex 50 and S&P BSE Bankex .