Zomato, Jio Financial Services shares gain ahead of Nifty 50 entry; likely to attract over $900 million inflows

Zomato share price and Jio Financial Services share price gained up to 3% in early trade on Thursday ahead of their inclusion in the benchmark Nifty 50 index, a move expected to drive substantial passive fund inflows into these stocks.

Zomato shares surged as much as 2.68% to ₹208.75 apiece, while Jio Financial Services shares rose as much as 1.95% to ₹226.75 apiece on the BSE.

Food delivery giant Zomato and Reliance Industries’ arm Jio Financial Services will enter the benchmark Nifty 50 index in the March rebalancing of Nifty indices. The adjustment is set to take place on March 27, with the stocks being included in the index from March 28.

Zomato will replace state-run Bharat Petroleum Corporation (BPCL), while Jio Financial Services will be replacing FMCG major Britannia Industries in the Nifty 50 index.

Impact on Fund Flows

The inclusion of Zomato and Jio Financial Services in the Nifty 50 index is projected to result in significant passive inflows, estimated at over $900 million.

According to Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research, Zomato is expected to attract inflows worth $602 million, while Jio Financial Services may see inflows of approximately $308 million.

Conversely, the exclusion of Britannia Industries and BPCL is anticipated to lead to fund outflows of $238 million and $225 million, respectively.

Meanwhile, shares of BPCL and Britannia Industries were trading lower on the BSE following the announcement.

Zomato share price has fallen 11% in one month and has slumped 26% on a year-to-date (YTD) basis. Jio Financial Services share price has gained moderately by 1% in one month, but the stock has declined 26% YTD.

At 10:00 AM, Zomato shares were trading 0.84% higher at ₹205.00 apiece, while Jio Financial Services shares were trading 1.26% higher at ₹225.20 apiece on the BSE.

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