India's food delivery aggregator Zomato Ltd. is set to bring in an inflow of $513 million or approximately Rs 4,356 crore, as it gears up to replace JSW Steel Ltd. in the upcoming December Sensex rejig, according to Nuvama Alternative & Quantitative Research.
The replacement was announced in November by the oldest stock exchange, as it announced its periodic rebalancing of constituents. JSW Steel is set to witness an outflow of $252 million or roughly Rs 2,140 crore, Nuvama said in a note on Dec. 16.
The changes in the index will be effective on Dec. 20. Companies are added and excluded from Sensex based on their average six-month float-adjusted market capitalisation. The index serves as both a benchmark and an investable index and is comprised of 30 large, well-established, and financially sound companies across key sectors.
The market capitalisation of Zomato Ltd. has risen by 162% to Rs 2.83 lakh crore this year, as its stock has rallied by 128%. Meanwhile, its rival Swiggy Ltd. has seen a stellar run post its debut on the exchanges. The stock has surged by 30% since its listing last month.
Meanwhile, Mahindra & Mahindra Ltd., ITC Ltd., Infosys Ltd. and Sun Pharmaceutical Industries Ltd. will see an outflow of $106 million or approximately Rs 900 crore as it sees their weight reduce.
Share price of Zomato rose as much as 2.9% to Rs 302.9, while JSW Steel stock fell as much as 1.53% to Rs 975.2 apiece.
Of the 26 analysts tracking Zomato, 24 have a 'buy' rating on the stock, and two have a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 3.2%.
HDFC Life Insurance Co., Bharat Petroleum Corp. and LTI Mindtree Ltd. have been excluded from BSE Sensex 50. Zomato Ltd., Jio Financial Services Ltd. and Hindustan Aeronautics Ltd. have been added.
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