Sensex Rejig: Nestle India, Titan, UltraTech Cement To Be Included, Tata Motors, Yes Bank, Two Others To Be Excluded
The Bombay Stock Exchange (BSE) logo is displayed on a cordon at the bourse’s building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Sensex Rejig: Nestle India, Titan, UltraTech Cement To Be Included, Tata Motors, Yes Bank, Two Others To Be Excluded

BSE Ltd. is set to include three new companies in its benchmark stock index with effect from Dec. 23, dropping four existing constituents.

Nestle India Ltd., Titan Company Ltd. and UltraTech Cement Ltd. will be added to the benchmark, replacing Tata Motors Ltd., Tata Motors Ltd. (DVR), Vedanta Ltd. and Yes Bank Ltd. That will also bring down the number of constituents to 30 firms in total from 31 previously.

Tata Motors’ shares have been dropped as BSE Auto Index has been the second worst-performing sectoral gauge in the past 12 months, declining 11.8 percent. Tata Motors declined 10.9 percent and Tata Motors (DVR) fell as much as 24.6 percent during the same period.

The changes reflect the challenges faced by automakers since the festive season last year. Weak sales have led to inventory pile-up at dealers’ end resulting in companies to cut down production. Also, the Supreme Court’s mandate to sell only Bharat Stage VI compliant engines from April next year have made buyers postpone their purchases.

Nestle Enters BSE After NSE

Nestle India’s inclusion in the index comes two months after it was added to the country’s other benchmark, the NSE Nifty Index. The maker of Maggi instant noodles outperformed its peers in the quarter ended September on the back of new product launches, trumping even slowing consumption in India that’s affected everyone from the makers of cars to soaps.

Other Dropouts

Yes Bank has declined 66.86 percent in the last 12 months—the worst performer on the index—followed by Vedanta, which fell 28.8 percent.

Other Changes

The full list of changes can be accessed here.

(Corrects an earlier version to update Yes Bank share price fall in the last 12 months.)

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