Shares of Jio Financial Services Ltd and Zomato Ltd climbed up to 3 per cent in Thursday's trade, as the two stocks are seen as major contenders to be included in Nifty in the March 2025 rejig. The announcement is likely by the second half of February 2025.
The two stocks should see good run up till then, Abhilash Pagaria Nuvama Alternative & Quantitative Research said adding that Avenue Supermarts (D-Mart) is unlikely to make it to the 50-pack Nifty.
In a trader-friendly move, NSE has officially announced a major shake-up, with SEBI approving 45 new stocks for derivatives trading, starting from the November 29, 2024. JFS and Zomato are among those 45 stocks. For a stock to be included in the Nifty club, it needs to be a part of the F&O segment. Brokerages such as Nuvama and JM Financial said that based on the new inclusions, Nifty inclusion is likely on these stocks in the next re-balancing.
"These stocks from this freshly minted F&O list are gearing up for an even bigger spotlight: a debut in the Nifty 50 during the March 2025 review," Nuvama said.
If added to Nifty, Zomato is expected to see $661 million in passive flows. Jio Financial, on the other hand, is expected to garner $403 million inflows. Shares of Jio Financial climbed 4.37 per cent to hit a high of Rs 312.50 on BSE. Zomato shares advanced 2.8 per cent to hit a high of Rs 265.80 on the stock exchange.
Nuvama said as these rising stars step up, BPCL Ltd and Eicher Motors Ltd are expected to bow out. Close contenders for exclusion, if they fall much more than previously highlighted probable names, are Hero MotoCorp Ltd (HMCL) and Britannia Industries Ltd.
Nifty stocks Eicher Motors and BPCL could see outflows to the tune of $246 million and $263 million if they are excluded. Borderline names Britannia Industries and Hero MotoCorp, if excluded, could see outflows of $248 million and $244 million, respectively.
Eicher Motors shares surged 7 per cent today, following strong set of Q2 results. BPCL shares were down half-a-per cent.
In the case of D-Mart, despite the company's sizable market capitalisation, its free float still does not stack up for it to make the cut, Nuvama's Pagaria said. "And just to clarify—Nuvama Alternative’s math suggests there will indeed be only two replacements," he added.