The National Stock Exchange (NSE) has announced a major reshuffle in its benchmark Nifty 50 index. Effective from March 28, 2025, online food delivery giant Zomato and fintech company Jio Financial Services will be added to the Nifty 50 index. They will replace state-owned Bharat Petroleum Corporation Limited (BPCL) and FMCG major Britannia Industries.
This change, which will also reflect in the Nifty 50 Equal Weight Index, has been determined based on the free-float market capitalization recorded between August 1, 2024, and January 31, 2025.
Impact on Zomato and Jio Financial Services
The inclusion of Zomato and Jio Financial Services in the Nifty 50 index is expected to boost investor confidence and improve liquidity in these stocks. However, recent market performance of these companies has been volatile. On February 21, 2025, Zomato’s stock price dropped by 1.48% to INR 230.25. Moreover, since the beginning of 2025, Zomato’s shares have declined by over 16%.
Similarly, Jio Financial Services’ stock price has fallen by approximately 23% in 2025. Despite this, the inclusion in the Nifty 50 index is likely to provide stability and attract institutional investors.
Significance of the Changes
The addition of Zomato and Jio Financial Services to Nifty 50 indicates a shift towards the growing dominance of the technology and fintech sectors in India’s stock market. With increased digital adoption and fintech expansion, these companies are expected to play a crucial role in the country’s economic growth.
Additionally, the removal of BPCL and Britannia Industries suggests a declining influence of the oil and FMCG sectors in the Nifty 50 index. This shift aligns with global trends where technology and digital financial services are gaining prominence.
Changes in Nifty 100 Index
Apart from the Nifty 50, significant changes have also been announced for the Nifty 100 index. The following companies will be included:
- Bajaj Housing Finance
- CG Power & Industrial Solutions
- Hyundai Motors India
Meanwhile, the following companies will be removed from the Nifty 100 index:
- Adani Total Gas
- Bharat Heavy Electricals Limited (BHEL)
- Indian Railway Catering and Tourism Corporation (IRCTC)
- National Hydroelectric Power Corporation (NHPC)
- Union Bank of India
Changes in Nifty 200 Index
Further modifications have been made in the Nifty 200 index. The following stocks will be added:
- Glenmark Pharmaceuticals
- Motilal Oswal Financial Services
- National Aluminium Company (NALCO)
- NTPC Green Energy
- Ola Electric
- Premier Energies
On the other hand, the following stocks will be removed from Nifty 200:
- Balkrishna Industries
- Delhivery
- Fertilizers and Chemicals Travancore
- IDBI Bank
- Indian Overseas Bank
- JSW Infrastructure
- MRPL
- LIC India
- Poonawalla Fincorp
- Sundaram Finance
Market Implications
1. Increased Institutional Investment
The inclusion of Zomato and Jio Financial Services in the Nifty 50 index means that several passive investment funds and exchange-traded funds (ETFs) that track the index will have to buy shares of these companies. This move is likely to increase liquidity and stabilize stock prices.
2. Greater Representation of New-Age Businesses
Traditional sectors such as oil and gas, and FMCG are making way for digital businesses and financial technology firms. This is reflective of India’s changing economic landscape and the growing impact of internet-driven businesses.
3. Potential Growth for Fintech and Digital Economy
Jio Financial Services’ entry into the index marks a significant milestone for the fintech sector in India. The company, backed by Reliance Industries, has the potential to transform digital lending and financial services in the country. Similarly, Zomato’s inclusion highlights the success of India’s startup ecosystem.
Investor Strategies and Recommendations
Given these changes, investors should reassess their portfolios and consider the following strategies:
- For Long-Term Investors: Consider investing in Zomato and Jio Financial Services as their Nifty 50 inclusion suggests potential for growth and increased institutional investment.
- For Risk-Averse Investors: Diversify portfolios to include companies that are consistently performing well, such as Bajaj Housing Finance and Hyundai Motors.
- For Short-Term Traders: Monitor stock movements of companies being added and removed from the indices, as significant volatility is expected around the time of index rebalancing.
The latest reshuffling of Nifty indices reflects a broader transformation in India’s stock market. The inclusion of Zomato and Jio Financial Services in the Nifty 50 index marks a major shift towards digital and fintech businesses, replacing traditional players like BPCL and Britannia Industries. Similarly, changes in the Nifty 100 and Nifty 200 indices indicate a growing emphasis on financial services, technology, and green energy sectors.
As these changes take effect on March 28, 2025, investors should closely monitor market movements and adjust their portfolios accordingly. The increasing influence of new-age businesses suggests exciting opportunities in India’s stock market, making it imperative for investors to stay informed and strategic in their investment decisions.
