NSE rejig tomorrow: Zomato, Jio Fin's Nifty inclusion to add $910 million

Shares of Britannia and BPCL will face exclusion from the benchmark gauge as Zomato and Jio Finance will be included

Shares of the food delivery platform Zomato and Mukesh Ambani-backed Jio Financial Services will be added to the benchmark Nifty 50 on Thursday, brining in a passive inflow of $910 million into the index, according to Nuvama Institutional Equities.

 

The Nifty indices semi-annual rejig is set to take place on March 27 and will be "action-packed", according to Nuvama, as it also coincides with the monthly and weekly derivative expiry. 

 

However, Zomato and Jio Financial will see net inflows of $391 million and $200 million, respectively, the brokerage said in a note. With the inclusion of Zomato and Jio Finance, stocks such as Britannia Industries and Bharat Petroleum Corp will face exclusion from the benchmark gauge. The exclusion of these two stocks will trigger an outflow of $463 million, Nuvama said.

 

In the Nifty index, stocks of Grasim, Adani Enterprise, UltraTech Cement and Cipla will see their weight increase, thereby bringing in an inflow of about $29 million. Counters of Bajaj Finance, HDFC Bank, Reliance Industries, ICICI Bank and Infosys will see their weights decrease in the index, triggering an outflow of $230 million, Nuvama said. 

 

Post the rejig, Nifty 50 FY26 price/earnings will increase from 19.9x to 20.2x, while the earnings per share (EPS) will fall from ₹1,186 to ₹1,171, Nuvama said in the note. 

 

Meanwhile, Indian hotels (+$108 million), Britannia (+$85 million), BPCL (+$80 million), CG Power (+$60 million), Hyundai Motor India (+$31 million), Bajaj Housing Finance (+$17 million) and Swiggy (+$13 million) will see inclusions in the Nifty Next 50 index. These seven inclusions will bring in an inflow of $394 million into the index, according to Nuvama. That said, NHPC (-$37 million), Bharat Heavy Electricals (-$40 million) will be among the big names to see exclusions from the Nifty Next 50 index. 

 

Coming to Nifty Bank, Federal Bank (+$17 million) and State Bank of India (+$14 million) will be among the other banking names to their weights increase by the most. Kotak Mahindra Bank (-$67 million), ICICI Bank (-$17 million), Axis Bank (-$11 million) and HDFC Bank (-$10 million) will see their weights fall in the banking gauge. 

 

Among the information technology pack, Oracle Financial Services Software (+$9 million) will see its shares getting included in the Nifty IT gauge at the expense of L&T Technology Services (-$6 million). 

 

In the broader market, shares of Ola Electric, Glenmark Pharmaceuticals, and NTPC Green will be among the 17 companies to get added to the Nifty Midcap 150 index, according to Nuvama.