Jio Financial Enters Nifty Next 50: Nuvama Anticipates Inflows Up to $81 Million

Jio Financial Services, the financial arm of Reliance Industries Ltd., is set to join the Nifty Next 50 index in the National Stock Exchange’s semi-annual reshuffling on March 28. This move places Jio Financial alongside four other entities – REC, PFC, IRFC, and Adani Power – in the Nifty Next 50 index.

Nuvama Alternative and Quantitative Research projects potential inflows of $89 million, while IIFL Alternative Research estimates around $67 million due to this index inclusion. However, on Thursday, Jio Financial may witness outflows of approximately $81 million, as indicated by Nuvama, owing to adjustments in the MSCI index, where its weightage is expected to decrease.

Despite being in the news for rumored discussions about acquiring Paytm’s Payments Bank, Jio Financial Services has explicitly denied such claims. Over the past six months, Jio Financial Services has witnessed an impressive surge, with its stock price soaring by more than 51%. The momentum continued over the last three months, where it recorded a remarkable growth of 40%. In the shorter term, the stock saw a substantial increase of 33% in just one month. Even in the span of the last week, Jio Financial’s upward trajectory persisted, with a notable 10% rise. This consistent upward movement reflects a strong performance and investor confidence in the company’s prospects.

Investors and market analysts are closely monitoring these developments, anticipating the financial implications of Jio Financial’s inclusion in the Nifty Next 50 index and the subsequent adjustments in the MSCI index. The stock’s recent performance and the surrounding speculations have added a layer of intrigue to the financial landscape.