The Nifty 50 is a stock market index comprising 50 of the largest publicly traded companies listed on the National Stock Exchange of India. It represents a broad cross-section of the Indian economy and is widely used as a benchmark for Indian market performance.
The upcoming restructure of the NSE index will see Zomato and Jio Financial Services entering the Nifty 50, while Britannia Industries and BPCL are being excluded. This reshuffling will take effect tomorrow, March 27, reflecting changes in market conditions and investor interests.
Nifty 50 Reshuffling
According to Nuvama Institutional Equities, the inclusion of Zomato and Jio Financial Services is anticipated to generate passive inflows of $602 million and $308 million, respectively, into the Nifty 50 index. On the other hand, the exclusion of Britannia Industries and BPCL is expected to result in outflows of $238 million and $225 million, respectively.
In this restructuring process, Grasim Industries ($9 million), Adani Enterprises ($9 million), UltraTech Cement ($6 million), and Cipla ($5 million) are expected to see an increase in their weightage in the Nifty 50 index. On the other hand, Bajaj Finance (-$79 million), HDFC Bank (-$51 million), Reliance Industries (-$41 million), ICICI Bank (-$35 million), and Infosys (-$24 million) will experience a decrease in their index weightage.
Furthermore, Nuvama Institutional Equities expects the forward P/E ratio for the Nifty 50 for FY26E with its current constituents to be 19.9x, with an EPS of 1,186. Following the rejig, the P/E ratio is expected to increase to 20.2x, while the EPS is projected to decrease to 1,171.
What’s next for Britannia Industries and BPCL?
After exiting the Nifty 50 index, BPCL and Britannia Industries are set to enter the Nifty Next 50 index, along with Indian Hotels Company, CG Power, Hyundai Motor India, Bajaj Housing Finance, and Swiggy.
Meanwhile, Godrej Consumer Products, Torrent Pharma, InterGlobe Aviation, Cholamandalam Finance, and Vedanta will see their weightage in the index increase. Zomato and Jio Financial Services are poised to leave the Nifty Junior index to join the frontline Nifty 50 index.
The stocks to watch out for tomorrow.
The upcoming restructure of the NSE index will see Zomato and Jio Financial Services entering the Nifty 50
Zomato Limited
Zomato Limited is one of the leading online Food Service platforms in terms of the value of food sold. Its offerings include food delivery, dining-out services, Loyalty programs, and others with a strong footprint across 23 countries with 131,233 active food delivery restaurants, 161,637 active delivery partners, and an average monthly food order of 10.7 million customers.
With a market capitalization of Rs. 1,97,880.44 crores on Wednesday, the company’s revenue rose by 61.3 percent from Rs. 3,507 crore to Rs. 5,657 crore in Q3FY24 -25. Meanwhile, Net profit fell from Rs. 138 crore to Rs. 59 crore during the same period.
Jio Financial Services
Jio Financial Services Ltd is a financial services company and a subsidiary of Reliance Industries. It offers a range of services, including insurance, asset management, and lending solutions. The company aims to leverage technology to drive financial inclusion in India. Jio Financial Services is focused on providing innovative and customer-centric financial products.
With a market capitalization of Rs. 1,43,708.06 crores on Wednesday, the company’s revenue rose by 8.34 percent from Rs. 414.33 crore to Rs. 448.89 crore in Q3FY24 -25. Meanwhile, Net profit rose from Rs. 293.82 crore to Rs. 294.78 crore during the same period.
Written by Sridhar J
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