Zomato, Jio Financial shares in focus on inclusion in Nifty 50 index

Shares of Zomato and Jio Financial are likely to remain in focus after the two companies were added to the Nifty 50 index as part of the semi-annual rejig. These stocks made an entry in the index at the cost of Bharat Petroleum Corporation (BPCL) and Britannia.

The decision came in after the NSE sub-committee’s meeting which was held on Friday, February 21. However, the changes will become effective from March 28, 2025, i.e. close of March 27, 2025.

Their inclusion in the Nifty 50 index comes on the basis of the 6-month average free-float market capitalisation within the eligible universe, the note from the committee said, adding that it is at least 1.5 times the 6-month average free-float market capitalisation of the smallest constituents Bharat Petroleum Corporation and Britannia Industries.

Zomato’s average free-float market capitalisation stood at Rs 1,69,837 crore while that of Jio Financial Services was at Rs 1,04,387 crores, an NSE note said. As for BPCL it was at Rs 60,928 crores and for Britannia Industries it was at Rs 64,151 crores.

Domestic brokerage firm JM Financial’s projections suggest that Zomato’s addition to the index could attract passive inflows of $702 million, while Jio Financial might receive $404 million as index funds rebalance their portfolios. Conversely, Bharat Petroleum and Britannia Industries are expected to witness outflows of $240 million and $260 million, respectively, as they exit the 50-share benchmark.

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According to the NSE’s note, InterGlobe Aviation (Rs 86,688 crores) and Hindustan Aeronautics (HAL, Rs 82,993 crores) were not considered for inclusion in the Nifty 50 index because their average six-month free-float market capitalizations were less than 1.5 times that of the next lowest-ranked Nifty constituents, Hero MotoCorp (Rs 64,181 crores) and Eicher Motors (Rs 66,764 crores).

Only the stocks that are available for trading in NSE’s Futures & Options (F&O) segment are eligible for inclusion in the index.

The Nifty index undergoes semi-annual rebalancing by NSE Indices, a subsidiary of India’s largest stock exchange. This process follows a structured timeline, with January 31 and July 31 as the cut-off dates each year. Stocks are assessed based on their average performance over the past six months to ensure the index aligns with current market trends. NSE Indices issues a four-week advance notice before implementing any changes, giving market participants time to adjust.

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