NIFTY50 rejig: Zomato, Jio Financial may join NIFTY50, replacing BPCL and Britannia; check details

Zomato and Reliance Group's Jio Financial Services are among the strong contenders that could soon join the benchmark NIFTY50 index.

According to investment banking firm JM Financial, Zomato and Jio Financial are likely to replace state-run Bharat Petroleum Corp. Ltd (BPCL) and leading FMCG player Britannia Industries in the upcoming NIFTY50 semi-annual rejig in March.

JM Financial said its projections are based on the average free-float market capitalisation as of January 12.

The National Stock Exchange of India (NSE) will announce its decision on reshuffling the constituents for the key index in February. The changes will take effect on March 31. The reshuffling will be based on the average free-float market capitalisation between 1 August 2024 and 31 January 2025.

According to NSE Indices Ltd, the NSE subsidiary that decides on the inclusion and exclusion of stocks in indices, a stock should have traded at an average market impact cost of 0.5% or less during the last six months for 90% of the observations, for a basket size of ₹10 crore, to qualify for inclusion in the NIFTY 50 index.

Also, only stocks allowed to trade in the futures and options segment are eligible to be a constituent of the NIFTY50.

Zomato likely to see inflow of ₹5,364 crore

Experts believe if Zomato is included in the NIFTY 50 index, it may see an inflow of $620 million, or ₹5,364 crore, which is 3.8 times its average daily trading volume.

In December 2024, Zomato was included in SENSEX 30 stocks, making it the first startup or new-age company to do so. Zomato had replaced steel giant JSW Steel on the index comprising the country's top 30 companies. Inclusion in SENSEX led to an inflow of $513 million (₹4,362 crore) into Zomato. Meanwhile, the company’s shares rose nearly 125% in 2024 but started the 2025 year on a lower note. So far this month, Zomato is down over 13% amid weakness in the overall market. However, the stock was trading 4.4% higher at ₹243.5 per share on Wednesday at 1:00 pm.

However, some experts believe Zomato shares currently have a very high valuation. The stock currently trades at a price-to-earnings (P/E) ratio of 288, which is much higher than the average P/E in the industry. A high P/E ratio means investors are paying a lot for the company’s each unit of earnings. Zomato’s current valuation is also tied to expectations around its rapidly growing quick commerce business, Blinkit.

Jio Financial Services will also see an inflow of $356 million, or ₹3,080 crore, amounting to 6.1 times its average daily volume.

Jio Financial shares rose over 28% in 2024 and are down 7% so far this month. The company will announce its third-quarter results on January 17. The stock was trading over 1% higher at ₹275.8 per share on Wednesday at 1:00 pm.

BPCL and Britannia could see outflows if excluded

Meanwhile, BPCL is estimated to see an outflow of $212 million, or ₹1,833 crore, 10 times its average daily volume. The stock was trading flat at ₹270.6 per share, up 0.17% on Wednesday at 1:00 pm. Britannia is also projected to witness an outflow of $229 million, or ₹1,981 crore, nearly 9.8 times its average daily volume. Britannia shares are trading flat today.