Zomato & Jio Financial Services Join Nifty 50; Key Stocks See Inflows and Outflows

In the midst of the Nifty Indices semi-annual rejig, which coincides with the monthly futures expiry session, food delivery giant Zomato Ltd. stock and financial services provider Jio Financial Services shares are scheduled to join the benchmark Nifty 50 index tomorrow, March 27. Whereas Britannia Industries share, BPCL stock, Bajaj Finance stock, Kotak Mahindra Bank shares, and NTPC share are anticipated to see the largest outflows in trade, while Zomato, Jio Financial Services, Power Grid, and CG Power are anticipated to experience the largest inflows. 

Since the six-month average free-float market capitalization ratio attests to more than 1.5 times the capital value of both Britannia Industries and BPCL, Zomato and Jio Finance will join the benchmark. Stocks must be traded in the NSE Futures & Options sector in order to be eligible for NSE index membership.

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The Nifty 50 rejig

According to Nuvama Institutional Equities, the addition of Zomato and Jio Financial Services is anticipated to result in passive inflows into the headline Nifty 50 index of $602 million and $308 million, respectively.  Conversely, the removal of BPCL and Britannia Industries will result in outflows of $225 million and $238 million, respectively.

While Bajaj Finance (-$79 million), HDFC Bank (-$51 million), Reliance Industries (-$41 million), ICICI Bank (-$35 million), and Infosys (-$24 million) will see their weights in the index decrease, Grasim Industries ($9 million), Adani Enterprises ($9 million), UltraTech Cement ($6 million), and Cipla ($5 million) are also anticipated to see an increase in their weights in the Nifty 50 index in the March rejig.

Nifty Next 50 rejig & Bank Nifty rejig

Along with Indian Hotels Company, CG Power, Hyundai Motor India, Bajaj Housing Finance, and Swiggy, BPCL and Britannia Industries are set to join the Nifty Next 50 index after leaving the Nifty 50 index.  The index's weights for Godrej Consumer Products, Torrent Pharma, InterGlobe Aviation, Cholamandalam Finance, and Vedanta will increase.

It is well anticipated that the weights of banking bellwethers Kotak Mahindra Bank, ICICI Bank, Axis Bank, and HDFC Bank will decrease, while the weights of SBI, Federal Bank, Bank of Baroda, IndusInd Bank, IDFC First Bank, Punjab National Bank, AU Small Finance Bank, and Canara Bank will increase in the major banking indicator, Bank Nifty.

Stock Performance & their Market Impact

Following the formal announcement, Zomato and Jio Financial Services' stock prices fell.  Although Zomato's stock price rose 6.5% over the last five trading days and 6.6% over the previous month, investors lost 11.4% over the course of the six-month period.  Zomato's investor stock value increased by 40% in the previous year.

In the five business days prior to the announcement, Jio Financial Services' share price rose by almost 5%.  The stock price lost 28% of its value in six months and fell 4.6% from the previous month.  Since the start of the previous year, Jio Financial Services' stock value has dropped by 29%. 

To Summarize

Zomato and Jio Financial Services are set to join the Nifty 50 index on March 27, 2025, causing significant inflows of $602 million and $308 million, respectively. Conversely, stocks like BPCL and Britannia Industries will face outflows. The Nifty 50 and Bank Nifty rejig also sees changes in the weight of other key stocks, impacting market dynamics.