It is mandatory to include stocks from the F&O segment in the Nifty 50 index.
JM Financial has said that Zomato and Jio Financial Services may join the benchmark Nifty 50 soon. The Nifty 50 is scheduled for a rejig in March next year. The announcement for March 2025 rebalancing will be made in February.
It said that Zomato and Jio Financial Services may be part of the benchmark index based on the new F&O inclusion.
On the other hand, auto major Eicher Motors and oil marketing major BPCL may exit the benchmark.
BPCL is a public sector oil and gas company under the administrative control of the Ministry of Petroleum and Natural Gas. Headquartered in Mumbai, it is India’s second largest state-owned downstream oil producer. On the other hand, Eicher Motors is the flagship company of the Eicher Group and a leading player in the automobile industry. It is the parent company of Royal Enfield.
It is mandatory to include stocks from the F&O segment in the Nifty 50 index.
The inclusion of Zomato would generate a passive inflow of $607 million, while the inclusion of Jio Financial Services could generate an inflow of $372 million.
On the other hand, excluding BPCL and Eicher Motors would result in an outflow of $223 million and $239 million respectively.
“For March rebalancing, the index provider assumes the average free float market cap prevailing during the period August 1 to January 31.” The brokerage says. It expects these changes based on the average free float market cap prevailing as of November 13. Announcements regarding the index rejig are likely to take place in February 2025.
The Nifty 50 index is revised every year based on data for the six months ending January 31 and July 31. The benchmark index represents the average of the 50 largest companies listed on the National Stock Exchange (NSE).
During the last rejig effective on September 30, 2024, Bharat Electronics and Tata Group’s Trent Ltd gained a place in the Nifty 50 index. IT giant LTI Mindtree and pharma major Divi’s Laboratories were replaced by two new entrants in the benchmark index.