Shares of Jio Financial Services and Zomato ended with major gains on Thursday in anticipation of their entry in the Nifty 50 after the National Stock Exchange (NSE) announced the launch of derivatives contracts on the stocks.
Jio Financial Services was the biggest gainer among Nifty 100 companies as it ended the day 6.8% higher with market capitalisation of Rs 2 lakh crore. Zomato was the third-best performer with a 4.4% jump and market capitalisation of Rs 2.3 lakh crore.
Also ReadNiva Bupa debuts at 6 per cent premium on NSE
The NSE has announced the launch of futures and options contract on 45 stocks, including Jio Financial Services and Zomato, from November 29. This comes after Sebi revised the eligibility criteria for entry and exit of stocks in the derivatives segment.
Also Read Trump 2.0: Should Indian markets be worried about these 4 factors? RBI announces changes to KYC rules! How it will impact you Sebi plans to expand scope of UPSI Indices end busy week with marginal losses
The addition of Jio Financial Services and Zomato to F&O is being considered a key event as market participants expect them to enter the benchmark index.
Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research, who sees the two stocks making their Nifty debut during the March 2025 review, expects a “good run-up” in the stocks.
The NSE reviews and rebalances its indices twice a year. Availability of a stock for trading in F&O is one of the key eligibility criteria for it to enter the benchmark index, apart from other criteria such as minimum listing history of one month and average impact cost of less than 0.5% in the last six months.
Pagaria believes BPCL and Eicher Motors are likely to be excluded from the Nifty 50 to make way for Jio Financial and Zomato.
Sriram Velayudhan, senior vice president – alternative research at IIFL Institutional Equities, believes there is an outside chance of Zomato’s addition to the Sensex during December 2024 review. Velayudhan said this would be akin to AU Small Finance Bank’s introduction in the Nifty Bank in March 2021 along with F&O.
Apart from these two, shares of several other companies which got included in the F&O segment also ended higher on Thursday.
» Read More
