The National Stock Exchange (NSE) is set to implement major changes to its indices, effective March 28, 2025, as part of its semi-annual rebalancing. These adjustments were aimed at implementing the evolving dynamics of the Indian stock market.
Zomato share price closed in the red, down 0.14 per cent at Rs 203, on March 27, on NSE. Jio Financial closed in the green, up 1.14 per cent, at Rs 225.20, during the same period. Meanwhile, Britannia Industries closed in the green, up 1.24 per cent on March 27 and BPCL was trading in the green, up 2.19 per cent on NSE.
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Nifty 50 Index Adjustments
Zomato Ltd. and Jio Financial Services Ltd. will be added to the Nifty 50 index, on March 27, 1025, replacing Britannia Industries and Bharat Petroleum Corporation Limited (BPCL).
This inclusion is expected to bring passive inflows of approximately $602 million (Rs 5,000 crore) into Zomato and $308 million (Rs 2,560 crore) into Jio Financial Services. Conversely, the exclusion of Britannia and BPCL is likely to result in outflows of about $238 million (Rs 1,975 crore) and $225 million (Rs 1,865 crore), respectively.
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Nifty IT Index Update
In the technology sector, Oracle Financial Services Software (OFSS) is set to replace L&T Technology Services (LTTS) in the Nifty IT index. This change reflects OFSS's growing prominence in the IT landscape.
Market Implications
The inclusion of high price-to-earnings (P/E) ratio companies like Zomato and Jio Financial Services is projected to elevate the Nifty 50's forward P/E ratio from 19.9x to 20.2x for FY26E, with the earnings per share (EPS) estimate adjusting from Rs 1,186 to Rs 1,171.
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Additional Index Revisions
The Nifty 50 and Nifty IT indices, and other adjustments will be included. The addition of Indian Hotels Company, CG Power, Hyundai Motor India, Bajaj Housing Finance, and Swiggy to the Nifty Next 50 Index is expected.
Additionally, 17 new stocks, such as Blue Star, BHEL, NHPC, Union Bank of India, Glenmark, IRCTC, and Motilal Oswal, will be included in the Nifty Midcap 150 Index. Meanwhile, 33 fresh counters, including Tata Chemicals, Delhivery, Wockhardt, and Carborundum Universal, are also set for inclusion in the Nifty Smallcap 250 Index.
Indian benchmark indices, Sensex and Nifty, opened in red on March 27, 2025.
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This followed the mixed global cues after US President Donald Trump's announcement of 25 per cent tariffs on cars not manufactured in the US. The 30-share BSE Sensex dropped by 201.11 points, or 0.26 per cent, opening at 77,087.39. Meanwhile, the Nifty fell by 52.90 points, opening the trading session at 23,433.95 on the monthly expiry day.
