Nifty 50 Rejig: Zomato, Jio Financial Services shares likely inclusions in March; to see $950 million in passive inflows

Zomato and Jio Financial Services shares are likely to enter the benchmark Nifty 50 index during its upcoming rebalancing in March 2024, leading to substantial inflow of passive funds in these shares.

According to estimates by Nuvama Alternative & Quantitative Research, Zomato and Jio Financial Services shares will replace state-run oil refiner Bharat Petroleum Corporation Ltd (BPCL) and FMCG major Britannia Industries in the 50-share index – Nifty 50.

“The upcoming March 2025 rejig is shaping up to be an action-packed event, with expectations of two key stocks replacing some of the market’s underperformers in India’s most widely tracked domestic index – the Nifty 50. Based on our analysis, we are confident that Zomato and Jio Finance will replace BPCL and Britannia Industries, respectively,” said Abhilash Pagaria, Head – Nuvama Alternative & Quantitative.

In Nuvama’s assessment, Hero MotoCorp narrowly holds its position, saved by just ₹1 crore higher free-float market capitalization. The competition for spots has been intense, with both Britannia Industries and Hero MotoCorp giving each other a tough fight to maintain their seats in the Nifty 50.

The expected inclusion in the Nifty 50 index is estimated to lead to substantial inflows worth $631 million into Zomato shares and $320 million in Jio Finance shares, as per Nuvama.

On the flip side, the exclusion of BPCL and Britannia Industries would likely result in outflows of $201 million and $240 million respectively.

Nifty Next 50 Rejig

The upcoming rebalancing of the Nifty index is also expected to see changes in the Nifty Next 50 index. The likely inclusions in the Nifty Next 50 index are BPCL, Britannia Industries, CG Power and Industrial Solutions, Hyundai Motor India, Swiggy, Bajaj Housing Finance, and NTPC Green Energy.

Meanwhile, Nuvama anticipates Zomato, Jio Financial Services, BHEL, NHPC, IRCTC, Union Bank, and Adani Total Gas to exit the index.

The average market-cap cut-off will be assessed until January 31, 2025. The official announcement is expected in the latter half of February, with the final adjustments taking place on March 27, 2025.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.