Zomato and Jio Financial to Add ₹7,834 Crore to Nifty After Index Rebalancing

The Nifty 50 index is undergoing its semi-annual rebalancing today, leading to a total inflow of ₹7,834.29 crore from the inclusion of Zomato and Jio Financial Services, as per a reports.

Exclusion of BPCL and Britannia

As part of the changes, Bharat Petroleum Corporation Ltd (BPCL) and Britannia will be removed from the index, resulting in significant outflows:

• BPCL will see an outflow of ₹1,937 crore (7.1x ADV). 
• Britannia will face an outflow of ₹2,048.96 crore (12.5x ADV). 

Inflows from New Entrants

The 2 new stocks will bring major investments into Nifty:

• Zomato will see inflows of ₹5,182.7 crore, 4 times its 20-day average daily volume (ADV). 
• Jio Financial Services will attract ₹2,651.6 crore (3.9x ADV). 

Adjustments in Weightage

The rebalancing will also lead to changes in stock weightage:
Increased Inflows:

• Grasim & Adani Enterprises: ₹77.48 crore each 
• UltraTech Cement: ₹51.65 crore 

Weight Reduction-Led Outflows

• Bajaj Finance: ₹680.11 crore 
• HDFC Bank: ₹439.06 crore 
• Reliance Industries: ₹352.97 crore 

Market Impact

With today’s rebalancing coinciding with the weekly derivatives expiry, market movements are expected to be volatile.

Conclusion

The Nifty 50 rebalancing is set to drive major inflows and outflows, impacting stock weightage and market dynamics. Investors should brace for volatility in the near term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.