Zomato, Jio Financial to Join Nifty 50, BPCL, Britannia to Exit
The Nifty 50 index, a benchmark index for the Indian stock market, is undergoing a significant change. Two new companies, Zomato and Jio Financial Services, will be joining the prestigious index, replacing Bharat Petroleum Corporation Ltd (BPCL) and Britannia Industries. This change will become effective from March 28, as announced by a press release.
Zomato and Jio Financial have been included in the Nifty 50 index as their six-month average free-float market capitalization (m-cap) is at least 1.5 times bigger than that of BPCL and Britannia. This criteria is set by the National Stock Exchange of India (NSE), which manages the Nifty 50 index.
Zomato, a food delivery and restaurant discovery platform, has seen significant growth in recent years. The company’s IPO in July 2021 was oversubscribed by 38 times, raising Rs 9,375 crore. Jio Financial Services, on the other hand, is a fintech company that offers a range of financial services, including lending, investment, and insurance.
The inclusion of Zomato and Jio Financial in the Nifty 50 index is a significant milestone for both companies. The index is widely followed by investors and is used as a benchmark for various investment products, such as index funds and exchange-traded funds (ETFs). The inclusion of these two companies will increase the representation of the fintech and technology sectors in the index.
On the other hand, BPCL and Britannia Industries will be exiting the Nifty 50 index. BPCL, a leading oil and gas company, has struggled in recent years due to declining demand and competition from private players. Britannia Industries, a leading food and beverage company, has also faced challenges in recent years, including increasing competition and volatility in the global economy.
The exit of BPCL and Britannia Industries from the Nifty 50 index is likely to have implications for their stocks. The index is widely followed by investors, and a company’s inclusion or exclusion can impact its stock price. The exit of these two companies may lead to a decline in their stock prices, as investors may lose interest in their stocks.
The change in the Nifty 50 index will become effective from March 28, and the new constituents will be reflected in the index calculations from that date. The NSE will also announce the new constituents of the Nifty 50 index on its website and through other channels.
In conclusion, the inclusion of Zomato and Jio Financial Services in the Nifty 50 index and the exit of BPCL and Britannia Industries are significant developments in the Indian stock market. The change will have implications for the stock prices of these companies and will increase the representation of the fintech and technology sectors in the index.
