Nifty Reshuffle Decision Imminent: Will Zomato and Jio Financial Join the Top 50?
Date: February 21, 2025
By: Riya Sharma, ETMarkets.com
As market participants eagerly await the semi-annual reshuffle of India’s benchmark Nifty 50 index, significant changes could be on the horizon. Analysts predict that Zomato and Jio Financial Services may be elevated into the prestigious top 50 club, while Bharat Petroleum Corporation and Britannia Industries face removal.
Upcoming Changes
The National Stock Exchange’s Index Maintenance Sub-Committee is set to finalize the changes later today. An official announcement is anticipated in the evening, with these adjustments scheduled to take effect on March 28, 2025. According to estimates from JM Financial, Zomato could bring in approximately $702 million in passive inflows, while Jio Financial is expected to attract around $404 million.
Conversely, the anticipated exit of Bharat Petroleum and Britannia Industries may result in substantial outflows of $240 million and $260 million, respectively, as index funds rebalance their portfolios.
Projected Trading Volumes
The potential inclusion of Zomato and Jio Financial is expected to trigger significant trading activity. JM Financial estimates that Zomato could see passive funds accumulating around 277 million shares, while Jio Financial may experience movements affecting almost 154 million shares. On the flip side, Bharat Petroleum and Britannia might witness the selling of about 78 million and 4.4 million shares respectively as funds unwound their positions in these stocks.
Background on Nifty’s Rebalancing Process
The Nifty undergoes a structured semi-annual rebalancing each year, occurring on January 31 and July 31, to ensure that the index remains reflective of current market conditions. Companies are evaluated based on their performance over the previous six months, with changes announced well in advance. This four-week notice period provides market players a chance to adjust their strategies accordingly.
Zomato made headlines last December when it became the first new-age tech stock to be included in the BSE Sensex, replacing JSW Steel during a similar rebalancing. Since being spun off from Reliance Industries in 2023, Jio Financial has gained traction among investors, positioning itself as a strong candidate for inclusion in the Nifty 50. #### Implications for Investors
The inclusion of a stock in the Nifty 50 usually results in increased market visibility and demand, particularly from passive funds and exchange-traded funds (ETFs). Historically, stocks that have been added to the index tend to experience noticeable price movements leading up to the rebalancing date.
Market observers are keenly awaiting the final list of changes from NSE Indices, as the day progresses, and reactions from investors will likely shape the trading landscape for the coming weeks.
Stay tuned as we provide updates on the decision made by the Index Maintenance Sub-Committee later today.
Disclaimer: The views expressed do not reflect the opinions of Economic Times or its affiliates. For further financial advice, market news, and stock tips, visit ETMarkets.com.
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