Nifty 50 Rejig: Zomato, Jio Financial Likely To Join Index From March, To See Passive Inflows of $951 Million

The food delivery and quick commerce aggregator Zomato and financial services provider Jio Financial Services are expected to join the Nifty 50 index in the upcoming index rebalancing in March 2025. According to Nuvama Alternative & Quantitative, these two stocks will replace underperformers in the market - FMCG company Britannia Industries and oil marketing giant Bharat Petroleum Corporation (BPCL).

The details of the NSE index rebalancing will be announced after the market closes on February 21, and the changes will take effect from March 31.

"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, respectively," said Abhilash Pagaria, Head - Nuvama Alternative & Quantitative.

Further, Pagaria noted that the competition for spots has been fierce, with both Britannia and Hero MotoCorp battling to keep their places in the Nifty 50.

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

Nifty 50 Rejig: Inflows And Outflows Expected

Nuvama anticipates that Zomato will see an inflow of $631 million, while Jio Financial Services could attract $320 million following the rebalancing.

Meanwhile, the removal of BPCL and Britannia from the index is expected to lead to outflows of $201 million and $240 million, respectively.

Nifty Next 50 Rejig: Who’s In, Who’s Out?

According to Nuvama, the likely new additions to the Nifty Next 50 include BPCL, Britannia, CG Power, Hyundai, Swiggy, Bajaj Housing Finance, and NTPC Green.

On the other hand, stocks expected to be removed from the index are Zomato, Jio Financial Services, BEHL, NHPC, IRCTC, Union Bank, and Adani Total Gas.

Nifty Indices Rejig: When And How It Is Done?

This rebalancing process is part of the semi-annual adjustments made to the Nifty 50 and other broader market Nifty indices, which occur twice a year—on the last working day of March and September.

NSE reconstitutes indices on the basis of the previous six months data ending January and July respectively. During this review, the index provider evaluates various factors such as market capitalisation, liquidity, and other key metrics to determine which stocks should be included or excluded from the indices.