Zomato Ltd and Jio Financial Services Ltd are set to join the Nifty 50 index this week, a change that is expected to bring in over $910 million in passive inflows. This significant shift in the index composition will replace Britannia Industries Ltd and BPCL, leading to notable adjustments in stock weightages and influencing the broader market dynamics.
According to Nuvama Institutional Equities, this inclusion will slightly lower Nifty’s estimated earnings per share (EPS) for FY26 from ₹1,186 to ₹1,171, pushing the price-to-earnings (PE) ratio up from 19.9 to 20.2 times. Similarly, projections for FY27 indicate an EPS drop from ₹1,349 to ₹1,335, with the PE ratio rising to 17.7 times.
Zomato alone is expected to see inflows of $602 million, while JFS may attract around $308 million in passive buying. On the other hand, Britannia and BPCL could experience outflows of $238 million and $225 million, respectively. Additionally, weightage reductions in key stocks like Bajaj Finance, HDFC Bank, Reliance Industries, ICICI Bank, and Infosys could result in moderate outflows.
The adjustments will take effect on March 27, with the new stocks officially included in Nifty on March 28. Alongside Nifty, changes across other indices such as Nifty Next 50, Nifty Bank, and Nifty CPSE will also lead to shifts in capital flow, affecting stocks like Indian Hotels, Power Grid, and CG Power.
With these changes, investors are watching closely to see how the market reacts to this reshuffling and the potential impact on valuations and trading trends.
