IndiGo Shares Hit Three-Month High On Entering Sensex; To Replace Tata Motors PV

IndiGo's parent company InterGlobe Aviation Ltd. rose 2% on Monday hitting nearly three-month high as the company is prepared to enter the BSE, Sensex index replacing Tata Motors Passenger Vehicles Ltd.

India's oldest bourse had revised the constituent list in the benchmark 30-share Sensex, which will see one major replacement effective from Dec. 22, 2025, according to an official notification.

BSE's revision comes in the backdrop of Tata Motors demerger between the passenger vehicle and the commercial vehicle segment, with the passenger vehicles stock named Tata Motors Passenger Vehicles.

Index rejigs are a key event for the market because they help the market participants gauge the direction in which the funds are moving. The periodic rebalancing of the Sensex ensures the benchmark index remains representative of India's evolving market dynamics.

When an index is re-organised, exchange-traded funds and mutual funds that track that index perform a rebalancing exercise. This is crucial for them to re-align their portfolios with the new composition of the index.

Essentially, the index's constituents are adjusted to maintain the intended asset allocation proportions or to keep the overall risk level consistent with the index's predefined methodology.

The rebalancing activity usually begins days before the date the changes are implemented.

The scrip rose as much as 2.16% to Rs 5,970 apiece on Monday, highest since Aug. 26. It pared gains to trade 0.26% higher at Rs 5,858.50 apiece, as of 11:22 a.m. This compares to a 0.11% advance in the NSE Nifty 50 Index.

It has risen 41.30% in the last 12 months and 28.53% year-to-date. Total traded volume so far in the day stood at 0.64 times its 30-day average. The relative strength index was at 39.74.

Out of 26 analysts tracking the company, 21 maintain a 'buy' rating, two recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 6367.17 implies an upside of 8.8%.