A major reshuffling is set to take place in the Indian stock market as Zomato and Jio Financial Services are poised to be added to the Nifty 50 index. Meanwhile, Bharat Petroleum Corporation Limited (BPCL) and Britannia Industries will be removed from the prestigious index. These changes will come into effect on March 28, 2025, marking a crucial shift in the market landscape.
The inclusion of Zomato and Jio Financial Services is based on stringent criteria that companies must meet to be a part of the Nifty 50. These criteria include high liquidity, free float market capitalization, and inclusion in the futures and options segment. According to the latest data, Zomato has an average free float market cap of ₹169,837 crore and Jio Financial Services stands at ₹104,387 crore. In comparison, BPCL’s market cap is ₹60,928 crore, and Britannia Industries is at ₹64,151 crore. The gap in market cap between these companies has led to the removal of BPCL and Britannia from the Nifty 50 index.
For investors, this reshuffle is likely to create both opportunities and challenges. The inclusion of a company in the Nifty 50 often results in increased demand for its stock, as large funds and Exchange-Traded Funds (ETFs) seek to include these companies in their portfolios. According to estimates by JM Financials, Zomato’s inclusion in Nifty 50 could result in an inflow of $70.2 million, while Jio Financial’s inclusion may bring in $40.4 million. On the other hand, BPCL and Britannia’s exclusion could lead to an outflow of $24 million and $26 million, respectively.
Along with the changes in the Nifty 50, the Nifty 100 and Nifty 200 indices will also see some modifications. In the Nifty 100, Bajaj Housing Finance, CG Power and Industrial Solutions, and Hyundai Motor India will be added, while Adani Total Gas, Bharat Heavy Electricals Limited (BHEL), Indian Railway Catering and Tourism Corporation Limited (IRCTC), National Hydroelectric Power Corporation (NHPC), and Union Bank of India will be removed. The Nifty 200 index will include companies such as Glenmark Pharma, Motilal Oswal Financial Services, National Aluminium Company (NALCO), NTPC Green Energy, Ola Electric, Vishal Mega Mart, and Vary Energies. Companies like Balkrishna Industries, Delhivery, Fertilizers and Chemicals Travancore, IDBI Bank, JSW Infra, Mangalore Refinery and Petrochemicals Limited (MRPL), NLC India, Poonawalla FinCorp, and Tata Chemicals will be excluded.
These changes are expected to have a significant impact on the stock market. The entry of new stocks into the indices may drive up their prices, while stocks of companies being removed may face selling pressure. On February 21, 2025, the Sensex closed 424 points lower at 75,311, while the Nifty dropped by 117 points to close at 22,795. The auto sector saw the biggest decline of 2.58%. As these changes unfold in the coming weeks, investors will need to reassess their strategies to adapt to these shifts in the market.
