Jio Financial Services (JFS) and Zomato have emerged as strong contenders for inclusion in the Nifty 50 index during its upcoming rebalancing in March 2024, according to estimates by JM Financial.
In a significant development, the National Stock Exchange (NSE) has introduced 45 new stocks to the Futures & Options (F&O) segment, effective November 29, 2024. This list includes prominent names such as Jio Financial Services, Zomato, and Avenue Supermarts.
Following the announcement, Jio Financial Services and Zomato stocks saw a sharp rally.
Jio Financial Services shares jumped as much as 6.81% to ₹319.80 apiece, while Zomato shares spiked as much as 4.64% to ₹270.55 apiece on the BSE.
Potential Index Inclusions
According to JM Financial, the upcoming rebalancing of the Nifty 50 index will factor in the average free-float market capitalization during the August 1 – January 31 period. Based on the prevailing free-float market cap as of November 13, Jio Financial Services and Zomato are poised to replace Bharat Petroleum Corporation Limited (BPCL) and Eicher Motors in the index.
The official announcement regarding the rebalancing is expected in February 2025.
Projected Passive Inflows and Outflows
JM Financial anticipates significant passive inflows for Jio Financial Services and Zomato if they are included in the Nifty 50. Zomato is estimated to attract $607 million, while Jio Financial Services could see inflows worth $372 million.
Conversely, BPCL and Eicher Motors, which may be excluded from the index, are likely to experience outflows of $223 million and $239 million, respectively.
At 11:15 AM, Jio Financial Services shares were trading 5.73% higher at ₹316.55 apiece, while Zomato stock price was up 3.64% at ₹267.95 apiece on the BSE.
Eicher Motors shares were up 7.57% at ₹4,936.30, while BPCL shares were trading 2.79% lower at ₹297.65 apiece.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
