India’s Nifty 50 Index Set for Major Reshuffle: Zomato and Jio Financial Services to Join While Bharat Petroleum and Britannia Industries Prepare for Exit
As part of its semi-annual rebalancing, India’s Nifty 50 index is poised for significant changes, with leading brokerage firm JM Financial predicting the inclusion of Zomato and Jio Financial Services. Meanwhile, Bharat Petroleum Corporation and Britannia Industries are expected to be removed from the benchmark index. This reshuffling is scheduled to take effect on March 28, 2025, with the final decision set to be confirmed later today by the National Stock Exchange (NSE) Index Maintenance Sub-Committee.
Expected Impact on the Market
According to estimates from JM Financial, Zomato’s entry into the Nifty 50 is likely to generate substantial passive inflows of approximately $702 million. Jio Financial Services is also anticipated to benefit significantly with expected inflows of around $404 million as index funds realign their portfolios in response to the changes.
Conversely, the exit of Bharat Petroleum and Britannia may lead to notable outflows from the index, estimated at $240 million and $260 million respectively. This adjustment in component stocks is predicted to result in considerable trading activity across the market. Specifically, it is estimated that passive funds may purchase about 277 million shares of Zomato and 154 million shares of Jio Financial. On the other hand, Bharat Petroleum and Britannia might see around 78 million and 4.4 million shares being liquidated respectively, as funds tracking the Nifty unwind their positions.
The Reshuffle Process
Nifty 50 undergoes its rebalancing every six months, conducted by NSE Indices, a subsidiary of the NSE. This process is rooted in a structured timeline where stocks are evaluated based on their average performance during the preceding six months, thereby ensuring that the index remains reflective of the current market environment. The NSE Indices provides market participants with a four-week advance notice ahead of any changes, allowing investors to strategically adjust their portfolios in anticipation of these movements.
Market Watch and Future Projections
The anticipated inclusion of Zomato comes on the heels of its establishment as a prominent player in the tech stock space, particularly after its recent addition to the BSE Sensex last December—a milestone for new-age tech stocks. Similarly, Jio Financial, which was spun off from Reliance Industries in 2023, has garnered attention from institutional investors and is now regarded as a strong candidate for inclusion amidst the Nifty reshuffle.
Historically, stocks added to the Nifty 50 index have seen significant price movements as investors position themselves ahead of the rebalancing. The market community is keenly observing the final confirmation of these changes, as released by NSE Indices later today.
The forthcoming reshuffle is seen as a pivotal moment, potentially reshaping the dynamics within the Nifty 50 and influencing trading volumes across participating stocks as institutional interest peaks.
Stay Tuned for Updates
Investors and market participants are advised to stay tuned for the official announcement from the NSE, which will clarify the final list of inclusions and exclusions for the Nifty 50 index.
For ongoing updates and more details on market movements and stock tips, follow our reporting on the latest developments in the financial sector.
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