SAP has lost its position as the most valuable company in the DAX, overtaken by industrial conglomerate Siemens.
The shift marks a significant milestone in the ongoing rotation out of high-growth technology stocks in European markets, as investors increasingly favor industrial and value-oriented names.
5% gain from Friday, the broader market sentiment has turned against the sector.
The change in ranking comes after a period of sustained underperformance for the enterprise software giant.
While SAP shares had shown tentative signs of recovery earlier in the week, climbing 1% at Monday's open to build on a 2.5% gain from Friday, the broader market sentiment has turned against the sector.
European benchmark indices retreated on Tuesday as selling pressure broadened across technology holdings.
Handelsblatt reports that SAP is now locked in a tight contest with insurer Allianz for the third spot in the index.