NSE Rejig: Zomato, Jio Finance Inclusion Into Nifty 50 To Bring In Nearly $1 Billion, Says Motilal Oswal

The potential inclusion of shares of Zomato Ltd. and Jio Financial Services Ltd. in the upcoming Nifty rejig could bring nearly $1 billion into the domestic stock market, according to Motilal Oswal Financial Services Ltd.

There is high probability that the National Stock exchange might announce index changes on Friday, with the adjustment taking effect March 27, 2025, the domestic brokerage said. The changes will be effective from March 31.

With the inclusion of the food aggregator and Mukesh Ambani-backed Jio Finance, stocks such as Bharat Petroleum Corp. and Britannia Industries Ltd. will face exclusion from the benchmark gauge. The exclusion of these two stocks will trigger an outflow of $479 million, Motilal Oswal said.

Zomato's stock has risen 45.91% in the last 12 months, while Jio's scrip has fallen 19.11% during the same period. The 12-month analysts' consensus target price for Zomato implies an upside of 23%, while the same consensus indicates a target upside of 21% for Jio Financial Services.

Meanwhile, a total of six inclusions into the Nifty Next 50 could help bring an inflow of $408 million. Indian Hotels Co., Britannia Industries Ltd., and Hyundai Motor India Ltd. are among the potential entrants into the index.

NHPC Ltd., Indian Railway Catering and Tourism Corp., and Union Bank of India will be among the stocks to face exclusion from the Nifty Next 50 index, the brokerage said.

While there will be no changes to the banking gauge, the information technology index — Nifty IT — will see inclusion of Oracle Financial Services Software Ltd. at the expense of L&T Technology Services Ltd.

The benchmark NSE Nifty 50 and the BSE Sensex have fallen 13.3% and 11.7%, respectively, from the previous peak, triggering the worst fall since 2020.

Meanwhile, the FTSE India March 2025 semi-annual review is scheduled to be announced on Friday with adjustments effective March 21, 2025. 360 One Wam Ltd., Blue Star Ltd., and Fortis Healthcare Ltd. lead with flows of $49 million, $54 million, and $65 million, respectively, according to IIFL Capital (Alt Desk).