Inflows in Tata Motors stock may surge as it replace Dr Reddy's in Sensex

Change effective from Dec 19, but adjustment will take place on Dec 16. After DRL's deletion, Sun Pharma will be the only healthcare stock in the index

Tata Motors will replace Dr Reddy's Laboratories in the 30-share Sensex. The move could lead to buying of $150 million in Tata Motors by passive funds tracking the Sensex. On the other hand, Dr Reddy’s will see outflows of $113 million, as per IIFL Alternative Research.

The change will become effective from December 19. However, the adjustment will take place on December 16. After Dr Reddy’s deletion, Sun Pharma will be the only healthcare stock in the Sensex. The healthcare sector weightage in the Sensex is less relative to the sector’s weight in the overall market.

Exchange traded funds (ETFs)