Tata Motors to make entry into Sensex in June 2022 | Should You Invest?

Tata Motors Limited is an Indian multinational automotive manufacturing company, that was founded in 1945 as a manufacturer of locomotives headquartered in the city of Mumbai, India which is part of Tata Group. Now, there is a high possibility of inclusion of Tata Motors stock in the Sensex, at the time of rebalancing of the index which is due in June 2022. So, let’s discuss the news reports of the possible inclusion of Tata Motors Stock in the index in this article as we move ahead.

Tata Motors to make entry into Sensex:

• There is a high possibility that this year tata motor rejoins the Sensex indices during the rebalancing of the indices which will take place in June.
• The rebalancing of the indices takes place according to the requirement to make the proper value of the stocks which might be under, overvalued, or any change in their free-float market capital during the year.
• Dr. Reddy is the stock that is possibly replaced by a tata motor to make its position in the Sensex.
• As the passive fund that follows the index like the Sensex index traded fund and the ETF of the Sensex will start making inflows in the tata motor.
• An inflow of Rs. 1179 crore in Tata Motors can be seen in the way of the passive fund. And inflow of Rs. 157 crores will also be seen in Tata Motors DVR.
• Further an outflow of Rs. 768 crores are expected from Dr. Reddy.

What Should Investors Do?

Regarding the inclusion of Tata Motors in the index, the Inclusion of any stock in the indices is one of the biggest positive news about it and the inflow of Rs. 1179 crore might impact positively to the stock. Hence one should closely watch this counter and should keep this stock on their radar. Do follow due diligence before making any investment decision.

Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.

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