Zomato and Jio Financial Services are strong contenders for inclusion in the Nifty 50 Index during the March 2025 reshuffle. This follows their recent addition to the Futures and Options (F&O) segment by the National Stock Exchange (NSE), a prerequisite for Nifty 50 eligibility.
Key Highlights:
F&O Inclusion: Both companies are among the 45 firms approved by NSE for F&O trading, enhancing their market visibility and liquidity.
Potential Nifty 50 Entry: According to JM Financial, this development significantly increases their chances of being added to the Nifty 50 Index in March 2025.
Investment Inflows:
Zomato: Could attract approximately ₹5,100 crores ($60.7 million) from passive mutual funds upon Nifty inclusion.
Jio Financial Services: May see inflows of around ₹3,140 crores ($37.2 million).
Combined Total: An estimated ₹8,200 crores.
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Stocks at Risk of Exclusion: Eicher Motors and BPCL might be removed from the Nifty 50 Index, potentially leading to outflows of ₹1,882 crores and ₹2,017 crores, respectively.
Stock Performance:
Closed at ₹269.71 on November 14, 2024, marking a 4% intraday increase.
Year-to-Date (YTD) Growth: 116.63%.
Closed at ₹319.60 on the same day, up by 6%.
YTD Growth: 36.26%.
Recent Company Announcements:
Zomato:
Introduced the ‘Food Rescue’ feature to reduce food wastage by offering canceled orders at discounted prices.
Reported a 389% increase in consolidated net profit to ₹176 crore in Q2, driven by food delivery margins and near break-even quick commerce business.
Jio Financial Services:
Received in-principle approval from SEBI for a mutual fund project in collaboration with BlackRock, aiming to offer wealth management and broking services.
Granted approval to raise its foreign investment limit to 49%, with current foreign ownership at 17.55%.
Pros and Cons:
Pros:
Enhanced Liquidity: F&O inclusion improves stock liquidity.
Increased Visibility: Potential Nifty 50 entry elevates market profile.
Investor Confidence: Positive stock performance reflects strong market sentiment.
Cons:
Market Volatility: Speculative trading may lead to price fluctuations.
Competitive Pressure: Existing Nifty 50 stocks like Eicher Motors and BPCL may face exclusion.
Regulatory Scrutiny: Increased attention from regulators due to higher market prominence.
FAQs:
1. Why are Zomato and Jio Financial Services being considered for Nifty 50 inclusion?
Their recent F&O inclusion meets a key criterion for Nifty 50 eligibility.
2. What is the significance of F&O trading?
Futures and Options trading enhances stock liquidity and allows for derivative trading.
3. How much investment could these companies attract upon Nifty inclusion?
Combined, they could see inflows of approximately ₹8,200 crores from passive mutual funds.
4. When is the Nifty 50 reshuffle scheduled?
The next reshuffle is set for March 2025.
5. Which stocks might be excluded from the Nifty 50 Index?
Eicher Motors and BPCL are potential candidates for exclusion.
6. What are the recent financial performances of Zomato and Jio Financial Services?
Zomato reported a 389% rise in net profit to ₹176 crore in Q2.
Jio Financial Services received SEBI approval for a mutual fund project with BlackRock.
7. What are the potential risks of Nifty 50 inclusion?
Possible market volatility and increased regulatory scrutiny.
8. How does Nifty 50 inclusion benefit a company?
It enhances visibility, liquidity, and attracts passive fund investments.
9. Where can I find more updates on NSE news?
Visit nsenews.in for the latest updates.
10. What is the impact on existing Nifty 50 stocks?
Potential exclusion of current stocks like Eicher Motors and BPCL.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. For detailed information, refer to official NSE announcements or consult a financial advisor.
