Zomato, Jio Financial Join Nifty 50, Britannia & BPCL Exit
Indian stock markets are set for a major shift as food delivery giant Zomato Ltd. and financial services firm Jio Financial Services Ltd. officially enter the Nifty 50 index on March 27, 2025. This move is part of the semi-annual reshuffle by Nifty Indices, coinciding with the monthly derivatives expiry session, making it an action-packed trading day.
Expected Market Impact
The inclusion of Zomato and Jio Financial Services in Nifty 50 is projected to attract passive inflows worth $910 million, according to Nuvama Institutional Equities. However, these two stocks will see net inflows of $391 million and $200 million, respectively.
At the same time, Britannia Industries and BPCL will exit the benchmark index, leading to estimated outflows of $463 million. Other major stocks witnessing changes in weightage include:
Stocks Gaining Weight in Nifty 50: Grasim, Adani Enterprises, UltraTech Cement, and Cipla (+$29 million combined inflow).
Stocks Losing Weight in Nifty 50: Bajaj Finance, HDFC Bank, Reliance Industries, ICICI Bank, and Infosys (-$230 million outflow).
Impact on Market Valuation
Post the rejig, the Nifty 50 price-to-earnings (P/E) ratio is expected to rise from 19.9x to 20.2x, while the earnings per share (EPS) will slightly decline from ₹1,186 to ₹1,171.
Nifty Next 50 Index: New Additions & Exclusions
The Nifty Next 50 index will also undergo significant changes, with seven stocks being added, bringing in an estimated $394 million in inflows. These additions include:
Indian Hotels (+$108 million)
Britannia (+$85 million)
BPCL (+$80 million)
CG Power (+$60 million)
Hyundai Motor India (+$31 million)
Bajaj Housing Finance (+$17 million)
Swiggy (+$13 million)
Meanwhile, NHPC (-$37 million) and Bharat Heavy Electricals (BHEL) (-$40 million) are among the stocks facing exclusion from the Nifty Next 50 index.
Banking Sector Adjustments in Nifty Bank
The Nifty Bank index will see weight adjustments, impacting some of India’s largest banks.
Weight Increases:
Federal Bank (+$17 million)
State Bank of India (SBI) (+$14 million)
Weight Decreases:
Kotak Mahindra Bank (-$67 million)
ICICI Bank (-$17 million)
Axis Bank (-$11 million)
HDFC Bank (-$10 million)
Nifty IT Index: Oracle Replaces L&T Tech
In the technology sector, Oracle Financial Services Software will be included in the Nifty IT index, replacing L&T Technology Services. This change is expected to bring an inflow of $9 million while causing an outflow of $6 million for L&T Tech.
Broader Market Changes: Midcap & Smallcap Indices
The Nifty Midcap 150 index will witness 17 new inclusions, featuring stocks like Ola Electric, Glenmark Pharmaceuticals, and NTPC Green. The highest expected inflows are for Blue Star ($9 million) and BHEL ($8 million).
However, 17 stocks will exit the index, including Indian Hotels Company (-$23 million), CG Power, and Tata Chemicals.
For the Nifty Smallcap 250 index, 33 new stocks will be added, such as Tata Chemicals, Delhivery, Wockhardt, and Carborundum Universal, while Blue Star, Glenmark Pharma, 360 ONE WAM, and NALCO will be removed.
CPSE Index Adjustments
In the Nifty CPSE index, public sector stocks like Power Grid, Bharat Electronics (BEL), ONGC, Coal India, NHPC, Oil India, Cochin Shipyard, NBCC India, NLC India, and SJVN will see their weights rise. However, NTPC’s weightage will decline.
Key Takeaways
Zomato & Jio Financial will join Nifty 50, attracting $910 million in passive inflows.
Britannia & BPCL will exit Nifty 50, triggering $463 million in outflows.
Nifty Bank index will see weight adjustments for major banks like SBI, Federal Bank, Kotak, and ICICI Bank.
Nifty IT index will replace L&T Technology Services with Oracle Financial Services Software.
Midcap & Smallcap indices will undergo major reshuffling, impacting Ola Electric, NTPC Green, and Tata Chemicals.
With the semi-annual reshuffle and derivatives expiry happening simultaneously, March 27 is expected to be a volatile and crucial day for Indian stock markets.
