Digital surge: Zomato, Jio Financial to join Nifty50, traditional firms BPCL, Britannia to exit

Foodtech major Zomato and Jio Financial Services, financial services arm of Reliance Industries, are set to join the benchmark index Nifty50 index on March 27. The inclusion of Zomato and Jio Financial reflects the growing prominence of new-age technology companies in the Indian stock market, and they will replace traditional companies Britannia Industries and Bharat Petroleum Corporation (BPCL).

The reshuffle is part of the NSE's semi-annual index review, which coincides with the monthly derivatives expiry session. The changes in the NSE indices constituents will be effective from March 28, 2025, (close of March 27). The NSE, on February 21, had announced major changes to its benchmark indices. 

The inclusion of Zomato in the Nifty50 index is expected to bring passive inflows of $602 million, while that of Jio Financial Services to trigger fund inflows of $308 million into the benchmark index, according to Nuvama Institutional Equities. On the other hand, the exclusion of Britannia Industries and BPCL will lead to outflows of $238 million and $225 million, respectively.

Apart from Zomato and Jio Financial Services, Indian Hotels Company ($85 million), Power Grid Corporation of India ($49 mn) and CG Power and Industrial Solutions ($47 mn) to see the highest passive inflows in terms of cumulative flow for all passive indices. While Bajaj Finance, Kotak Mahindra Bank, and NTPC may lead to outflows of $79 million, $78 million, and $72 million, respectively.

Adding to it, Grasim Industries ($9 million), Adani Enterprises ($9 million), UltraTech Cement ($6 million), and Cipla ($5 million) are also expected to see rise in their weightage in the Nifty50 index. Meanwhile, Bajaj Finance (-$79 million), HDFC Bank (-$51 million), Reliance Industries (-$41 million), ICICI Bank (-$35 million), and Infosys (-$24 million) will see slight reduction in their weightage.

In Nifty Bank index, Federal Bank is expected to experience a net inflow upwards of $17 million, while key outflows are projected in Kotak Mahindra Bank, leading to an outflow to the tune of $67 million.

In the March rejig, Blue Star, BHEL and NHPC will be included in the Nifty Midcap 150 space,, while Indian Hotels, CG Power and Industrial Solutions, and Tata Chemical will be excluded from the index.

In Nifty Smallcap 250 index, Tata Chemical, Delhivery, and PG Electroplast will be added, while Blue Star, Glenmark Pharmaceuticals, and IIFL Wealth Management  (360 ONE) will be removed.

Another brokerage house JM Financial expects Zomato and Jio Financial Services to bring passive inflows of $544 million and $278 million, respectively. On the flip side, the exclusion of Britannia Industries and BPCL may result in outflows of $215 million and $204 million, respectively.

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