Zomato and Jio Financial Services to Replace Britannia and BPCL at Nifty 50 Index

The National Stock Exchange (NSE) made substantial benchmark index updates on Friday, February 21 2025 that brought important modifications that might affect market performances. Zomato, along with Jio Financial Services will join the  Nifty 50 index as new members by replacing both Britannia Industries and Bharat Petroleum Corporation Ltd (BPCL) starting March 28th, 2025. This reconstruction belongs to their semi-annual review process. 

Zomato and Jio Finance will join the benchmark due to the six-month average free-float market capitalization ratio attesting to greater than 1.5 times the capital value of both BPCL and Britannia Industries. To qualify for NSE index membership, stocks need to be traded within the NSE Futures & Options segment.

Stock Performance and Market Impact

The trading performance of Zomato and Jio Financial Services shares declined after the official announcement. The Zomato stock price increased by 6.5% during the previous five trading days along with a 6.6% monthly rise, yet investors sustained losses amounting to 11.4% during the six-month period. During the previous year, Zomato achieved a 40% increase in investor stock value.

The share value of Jio Financial Services increased by about 5% during the five business days that preceded the announcement. The stock price dropped by 4.6% since the previous month and lost 28% value in six months. Jio Financial Services experienced a 29% decline in its stock value since the beginning of the previous year. The research analysts predicted ₹3,128 crore inflows for Jio Financial Services along with ₹6,525 crore inflows for Zomato yet, passive trackers would sell some of their shares because both companies left the Next 50 index. Due to their exit from the Nifty 50 index, both BPCL and Britannia will experience significant market selling of more than ₹2,000 crore each.

The addition of Zomato and Jio Finance to the Nifty 50 index offers many beneficial strategic advantages. Their exposure rises due to their appearance within Sensex which inspires investor confidence among both local and foreign institutions with their benchmark status. Their stocks become more appealing to investors because of the rise in trading volumes, together with improved market liquidity. The requirement of Sensex-tracking funds, including mutual funds and exchange-traded funds (ETFs), and institutional investors to invest in listed stocks will push the stock prices upward. The addition of their company to the benchmark index generates confidence among investors about their financial health and industrial leadership, thus solidifying their status as leaders in their markets. Now, all eyes are likely to be on these two companies. 

Changes in Other Nifty Indices

Along with this,  several changes were also announced for other NSE indices as well. Few of which are mentioned as below:

Nifty 100

• BHEL and IRCTC will be excluded from NIFTY100.
• Stocks like Bajaj Housing Finance, CG Power and Industrial Solutions, and Hyundai Motor India are likely to be added on the index. Now, focusing on the companies that will be taken off the index includes Adani Total Gas, Bharat Heavy Electricals (BHEL), Indian Railway Catering and Tourism Corporation (IRCTC), National Hydroelectric Power Corporation (NHPC), and the Union Bank of India. 

Nifty Midcap 150

• Stocks of Companies like Bayer Cropscience, CG Power and Industrial Solutions, Delhivery, IDBI Bank, Indian Hotels, Indian Overseas Bank, Metro Brands, Poonawalla Fincorp and nine other companies are excluded from the Nifty Midcap 150.