YES Bank, Tata Motors, 2 others dropped from Sensex

The Bombay Stock Exchange (BSE) has reconstituted its sensitive index - the 30-share Sensex by dropping four blue-chip companies.

Yes Bank, Tata Motors, Tata Motors DVR, and Vedanta have been dropped from the index. These companies have made way for three other companies such as Titan, Ultratech and Nestle India into the index, BSE said in a statement on Friday.

The shares of the companies that have been excluded from BSE Sensex have tanked heavily in the recent past or have remained volatile: YES Bank has tanked by a whopping 65% in 2019, while that of Vedanta have dipped by 30%. Tata Motors, on the other hand, has seen a very volatile year when it comes to the movement of share prices.

The changes in the BSE Sensex will take place from December 23, 2019. Asia Index Pvt. Ltd, that provides financial market indices for BSE Sensex, takes into account various metrics while adding or dropping any company from the Index. It is a 50-50 partnership between S&P Dow Jones Indices and BSE Ltd.

In a massive revamp, state-run Punjab National Bank has been dropped from the S&P BSE 150 MidCap Index, along with Larsen & Toubro Infotech, Indiabulls Ventures, and six others.

Reliance Communications, which has been battling insolvency in the recent past and seems to be headed towards liquidation, has been dropped from most of the indices.

Edelweiss Financial Services has also been dropped from the S&P BSE 100 ESG Index and S&P BSE Sensex Next 50.

Other than these names, most of the companies, which are facing debt headwinds, have been dropped from one or the other index.