NSE Index Rejig: Zomato, Jio Financial Services to enter Nifty 50 today; Britannia Industries, BPCL excluded

Oracle Financial Services Software will replace L&T Technology Services in the Nifty IT index.

Food delivery major Zomato Ltd. and financial services player Jio Financial Services Ltd. are set to join the benchmark Nifty 50 index later in trade today, March 27, amid the Nifty Indices semi-annual rejig - coinciding with the monthly derivatives expiry session.

Zomato, Jio Financial Services, Power Grid, and CG Power are expected to see the highest inflows, while Britannia Industries, BPCL, Bajaj Finance, Kotak Mahindra Bank, and NTPC will see the most outflows in trade.

Nifty 50 rejig

The inclusion of Zomato and Jio Financial Services is expected to bring passive inflows of $602 million and $308 million into the headline Nifty 50 index, according to Nuvama Institutional Equities. On the flip side, the exclusion of Britannia Industries and BPCL will lead to outflows of $238 million and $225 million, respectively.

In the March rejig, Grasim Industries ($9 million), Adani Enterprises ($9 million), UltraTech Cement ($6 million), and Cipla ($5 million) are also expected to see their weightage in the Nifty 50 index rise, while Bajaj Finance (-$79 million), HDFC Bank (-$51 million), Reliance Industries (-$41 million), ICICI Bank (-$35 million), and Infosys (-$24 million) will see their weights in the index go down.

According to Nuvama Institutional Equities, Nifty 50's the forward PE for FY26E with the current constituents is 19.9x, while the EPS is 1,186. The PE ratio will rise to 20.2x following the rejig, while the EPS will slip to 1,171.

Bank Nifty rejig

In the key banking gauge, Bank Nifty, the weightage of SBI, Federal Bank, Bank of Baroda, IndusInd Bank, IDFC First Bank, Punjab National Bank, AU Small Finance Bank and Canara Bank is expected to rise, while banking bellwethers Kotak Mahindra Bank, ICICI Bank, Axis Bank, and HDFC Bank's weightages will reduce.

Nifty Next 50 rejig

After exiting the Nifty 50 index, BPCL and Britannia Industries are poised to enter the Nifty Next 50 index, along with Indian Hotels Company, CG Power, Hyundai Motor India, Bajaj Housing Finance, and Swiggy. Godrej Consumer Products, Torrent Pharma, InterGlobe Aviation, Cholamandalam Finance, and Vedanta will see their weights in the index go up.

Zomato and Jio Financial Services are set to exit the Nifty Junior index to graduate to the frontline index, while BHEL, NHPC, Union Bank, IRCTC and Adani Total Gas will also make an exit.

Other rejigs: CPSE, IT, broader markets

Power Grid, BEL, ONGC, Coal India, NHPC, Oil India, Cochin Shipyard, NBCC (India), NLC India, and SJVN will see their weights in the Nifty CPSE gauge rise, while the weightage of NTPC is likely to fall, noted Nuvama.

On the information and technology services front, Oracle Financial Services Software is set to replace L&T Technology Services in the Nifty IT index.

17 stocks are set to join the Nifty Midcap 150 index, such as Blue Star, BHEL, NHPC, Union Bank of India, Glenmark, IRCTC, and Motilal Oswa. The expected inflows per inclusion range from $2 million to $9 million, with the highest expected inflows are seen in Blue Star ($9 million) and BHEL ($8 million).

On the flip side, 17 counters are slated to exit the Nifty Midcap 150 index, such as Indian Hotels Company, CG Power, Tata Chemicals, Poonawalla Fincorp, and Delivery, with outflows reaching up to $23 million for Indian Hotels Company.

The Nifty Smallcap 250 will include 33 fresh counters, such as Tata Chemicals, Delhivery, Wockhardt and Carborundum Universal, while Blue Star, Glenmark Pharma, 360 ONE WAM and NALCO are set to be deleted from the index.

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