The Nifty 50 is all set for a rejig in March 2025. The potential stocks for inclusion include food delivery giant Zomato and Reliance Group-backed Jio Financial Services.
According to Nuvama Alternative & Quantitative, these stocks will replace the markets’ underperformers Britannia and BPCL in the index. The announcement for the constituent change will happen on February 21 after market closing. The rejig will come into effect from March 31 onwards.
“The upcoming March 2025 rejig is shaping up to be an action-packed event, with expectations of two key stocks replacing some of the market’s underperformers in India’s most widely tracked domestic index – the Nifty 50,” read a report by Nuvama.
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The Nifty 50’s rebalancing is done semi-annually on the last working day of March and September.
Nuvama expects an inflow of $631 million in Zomato and $320 million in Jio Financial Services post-rebalancing. On the flip side, the exclusion of BPCL and Britannia would likely result in outflows of $201 million and $240 million, respectively. The Nifty 50 and Sensex both have corrected around 13% from their peak and are under pressure. Nuvama thinks that Zomato and Jio Finance “show lighter long-side pre-positioning.”
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Further, as the market markets are at an extremely oversold zone lately, “some catchup should happen till an official announcement is out,” said Nuvama.
Hero MotoCorp narrowly saved itself from the exclusion, rescued by just Rs 1 crore higher free-float market capitalisation. For the March rebalancing, the index provider calculates an average free-float market capitalisation between April 01 to January 31.
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