Nifty 50 Rejig: Zomato, Jio Financial Services Set to Enter; Passive Inflows of $950 Million Expected
Nifty 50 Rejig : The Indian stock market is gearing up for a significant reshuffle as Zomato and Jio Financial Services (JFS) are poised to enter the benchmark Nifty 50 index during its scheduled rebalancing in March 2025. This shift is expected to bring massive passive inflows worth $950 million, making it a crucial development for investors tracking India’s most-watched stock index.
Zomato and Jio Financial to Replace BPCL, Britannia in Nifty 50
According to Nuvama Alternative & Quantitative Research, food delivery giant Zomato and Jio Financial Services, the financial arm of Reliance Industries, are set to replace Bharat Petroleum Corporation Ltd (BPCL) and Britannia Industries in the Nifty 50 index.
Why these changes?
- Underperformance & Market Trends: BPCL and Britannia Industries have struggled in maintaining their competitive edge, paving the way for fast-growing companies like Zomato and JFS.
- Market Capitalization: Both new entrants have showcased strong performance and higher free-float market capitalization, which is a key factor in the Nifty 50 selection process.
- Rising Investor Interest: Zomato’s increasing dominance in the food-tech sector and JFS’s strong backing from Reliance Industries make them attractive additions to the index.
Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research, noted,
“The March 2025 rejig is shaping up to be an action-packed event. Based on our analysis, we are confident that Zomato and Jio Financial Services will replace BPCL and Britannia Industries in the Nifty 50 index.”
The assessment also reveals that Hero MotoCorp barely retained its spot, surpassing the elimination threshold by just ₹1 crore in free-float market capitalization.
Passive Inflows & Outflows – What It Means for Investors?
When a stock enters the Nifty 50 index, passive investment funds that track the index automatically buy the newly included stock. Conversely, removed stocks witness selling pressure as these funds exit their positions.
As per Nuvama’s estimates, the changes will lead to:
- Zomato receiving $631 million in passive inflows
- Jio Financial Services getting $320 million in passive inflows
On the other hand, the outgoing BPCL and Britannia Industries are likely to see outflows of:
- BPCL: $201 million
- Britannia: $240 million
This shift is expected to drive stock price volatility, especially around the official announcement date.
Nifty Next 50 Index Rejig
Alongside the Nifty 50 reshuffle, the Nifty Next 50 index will also undergo a rebalancing. The expected inclusions and exclusions are as follows:
Likely Additions to Nifty Next 50:
- BPCL
- Britannia Industries
- CG Power and Industrial Solutions
- Hyundai Motor India
- Swiggy
- Bajaj Housing Finance
- NTPC Green Energy
Likely Exits from Nifty Next 50:
- Zomato
- Jio Financial Services
- BHEL
- NHPC
- IRCTC
- Union Bank
- Adani Total Gas
The final market-cap cut-off will be assessed until January 31, 2025, with an official announcement expected in mid-February. The index adjustments will be implemented on March 27, 2025.
Stock Performance & Key Financial Ratios
Here’s a quick look at the financial ratios of the companies involved in the rejig:
| Company | Market Cap (₹ Cr.) | P/E Ratio | P/B Ratio | ROE (%) | Debt-to-Equity Ratio |
|---|---|---|---|---|---|
| Zomato | 1,40,000 | 80.5 | 7.2 | 12.4 | 0.2 |
| Jio Financial Services | 1,30,500 | 60.3 | 5.8 | 15.1 | 0.1 |
| BPCL | 1,05,000 | 12.7 | 2.1 | 8.9 | 0.6 |
| Britannia Industries | 95,000 | 45.2 | 18.3 | 34.5 | 0.3 |
What Investors Should Expect?
- Potential Rally in Zomato & Jio Financial Shares:
- Both stocks could witness price appreciation due to increased demand from passive funds.
- Pressure on BPCL & Britannia:
- Investors might see short-term sell-offs in these stocks due to passive outflows.
- Volatility Around Announcement & Adjustment Dates:
- Market participants should keep an eye on mid-February (announcement) and March 27 (effective date) for potential trading opportunities.
Final Thoughts
The Nifty 50 rejig in March 2025 is shaping up to be a major event, especially for investors tracking index movements. With Zomato and Jio Financial Services set to enter and BPCL and Britannia likely to exit, the impact on stock prices and fund flows will be significant.
For investors, this provides a unique opportunity to strategize ahead of index rebalancing. Whether you’re a short-term trader looking for volatility plays or a long-term investor aiming for stable returns, staying updated with these changes is crucial.
Stay tuned for more stock market updates with Narayan Ventures!
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.