Zomato may become a Nifty 50 share this March
What's the story
Brokerage firm JM Financial has projected that food delivery giant Zomato could be included in the Nifty 50 index, after its bi-annual revision in February. The prediction comes after a similar forecast by Nuvama Alternative and Quantitative Research last year. If Zomato is included in the benchmark index, it could result in cumulative inflows of around $620 million into the stock.
Market movements
Nuvama's forecast
Notably, in November, Nuvama had also expected Zomato's entry into the Nifty 50, estimating inflows of about $661 million into the company. JM Financial has also indicated that Jio Financial Services could enter the index in the next revision, attracting inflows of about $356 million. If both companies enter, BPCL and Britannia could be removed from the index, resulting in potential outflows of $212 million and $229 million, respectively.
Stock trends
Zomato's stock performance and potential index shifts
At the time of writing this article, Zomato's shares were trading 3.4% higher at ₹234.55. Nuvama has predicted BPCL's exit in case of a Nifty rejig but suggested Eicher Motors as the likely candidate for removal instead of Britannia. These potential shifts in the index composition highlight the evolving landscape of India's stock market and the growing influence of new-age companies like Zomato.