Nifty 50 Rejig: Zomato, Jio Financial Services to replace BPCL, Britannia Industries in frontline index

Zomato and Jio Financial Services are set to enter the benchmark Nifty 50 index on Thursday, March 27, replacing Britannia Industries and Bharat Petroleum Corporation (BPCL), amid the semi-annual rebalancing of Nifty Indices. The Nifty Indices semi-annual rejig coincides with the derivative expiry.

The National Stock Exchange (NSE), on February 21, had announced major changes to its benchmark indices. As per the stock exchange, food delivery giant Zomato and Reliance Industries’ arm Jio Financial Services Ltd will enter the broader Nifty 50 index in the upcoming semi-annual reshuffle, effective March 28, 2025. The adjustment will take place on March 27.

Zomato, Jio Financial Services, PowerGrid Corporation of India and CG Power and Industrial Solutions are expected to see the highest passive inflows in terms of cumulative flow for all passive indices. Meanwhile, highest outflows are expected in Britannia Industries, BPCL, Bajaj Finance, Kotak Mahindra Bank, NTPC and HDFC Bank.

Nifty 50 Changes

The inclusion of Zomato shares into the frontline Nifty 50 index is expected to lead to passive inflows worth $602 million in the stock, while inflows in Jio Financial Services shares are estimated at $308 million, according to Abhilash Pagaria, Head, Nuvama Alternative & Quantitative Research.

On the contrary, the exclusion of Britannia Industries and Bharat Petroleum Corporation (BPCL) will lead to outflows of $238 million and $225 million, respectively.

In the Nifty 50 March rejig, the weightage of Grasim Industries, Adani Enterprises, UltraTech Cement and Cipla shares in the benchmark index will increase. This is expected to result in inflows worth $9 million in Grasim Industries and Adani Enterprises each, $6 million in UltraTech Cement and $5 million in Cipla.

On the flip side, Bajaj Finance (-$79 million), HDFC Bank (-$51 million), Reliance Industries (-$41 million), ICICI Bank (-$35 million), and Infosys (-$24 million) will see a decrease in their weights in the Nifty 50 index, as per Nuvama.

Nifty 50 Valuation

The inclusion of high P/E stocks such as Zomato and Jio Financial Services in the Nifty 50 is expected to result in an increase in the index's price-to-earnings (P/E) ratio. Currently, the Nifty 50, which includes stocks like Britannia and BPCL, is trading at a P/E ratio of 19.9x, based on an estimated earnings per share (EPS) of ₹1,186 for FY26. For FY27, the index is projected to trade at a P/E of 17.5x, with an estimated EPS of ₹1,349.

Following the inclusion of Zomato and Jio Financial Services, the revised estimates indicate that the Nifty 50 will trade at a P/E of 20.2x and 17.7x for FY26 and FY27, respectively, with corresponding EPS estimates of ₹1,171 and ₹1,335.

Bank Nifty Rejig

Bank Nifty is also set to undergo changes in the weightage of its constituents. Federal Bank, State Bank of India (SBI), IndusInd Bank, Bank of Baroda, IDFC First Bank, Punjab National Bank (PNB), AU Small Finance Bank and Canara Bank are expected to see a rise in their weightage.

Meanwhile, weightages of Kotak Mahindra Bank, ICICI Bank, Axis Bank, and HDFC Bank in the Bank Nifty index will decrease.

Nifty Next 50 rejig

BPCL and Britannia Industries will enter the Nifty Next 50 index, after their exit from Nifty 50 index. Other stocks to enter the Nifty Next 50 index are Indian Hotels Company, CG Power and Industrial Solutions, Hyundai Motor India, Bajaj Housing Finance, and Swiggy.

The weights of some stocks in the index will rise. These include Godrej Consumer Products, Torrent Pharma, InterGlobe Aviation, Cholamandalam Financial Holdings, and Vedanta.

The stocks to be excluded from the index are Zomato, Jio Financial Services, Bharat Heavy Electricals Ltd (BHEL), NHPC, Union Bank of India, Indian Railway Catering and Tourism Corporation (IRCTC) and Adani Total Gas.

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