Nifty indices rejig: Zomato, Jio Fin to see inflows up to $591 mn; Britannia, BPCL face outflows up to $300 mn on exit

The semi-annual rejig of Nifty indices is set for Thursday, March 27, with Zomato and Jio Financial Services set to enter the Nifty 50 index, driving combined cumulative inflows of $591 million across passive funds, according to Nuvama Alternative & Quantitative Research. Meanwhile, the exclusion of Britannia Industries Ltd. and Bharat Petroleum Corp Ltd. (BPCL) is expected to trigger sizeable outflows.

Zomato is projected to see the highest cumulative inflow of $391 million, while Jio Financial is expected to attract $200 million in passive buying. The reshuffle, which coincides with Nifty’s monthly derivatives expiry, is likely to add to trading volumes as index-tracking funds realign their portfolios.

On the other hand, Britannia Industries is expected to witness cumulative outflows of $153 million, while BPCL may face outflows of $145 million, according to Nuvama. Bajaj Finance is likely to see passive selling worth $79 million, followed by Kotak Mahindra Bank at $78 million and NTPC at $72 million.

Brokerage Nuvama estimated Indian Hotels Company will also benefit from inflows of $85 million, while Power Grid Corporation and CG Power are set to see passive inflows of $49 million and $47 million, respectively.

“The Nifty Indices Semi-Annual Rejig is set to take place on March 27, 2025, making it an action-packed day as it coincides with the derivative expiry,” Nuvama said in its note.

Indian Hotels, Bajaj Housing Finance, Hyundai Motor India, CG Power, and Swiggy are set to be added to the Nifty 100 and Nifty Next 50 indices, while Bharat Heavy Electricals Ltd. (BHEL), Indian Railway Catering and Tourism Corp. (IRCTC), Adani Total Gas Ltd., NHPC Ltd., and Union Bank of India will be dropped.The changes, part of the NSE Indices’ scheduled review, will be implemented at the close of trade on Thursday. Passive flows from index funds and ETFs tracking the Nifty indices are expected to drive significant buying and selling in the impacted stocks.Also read | Understanding the Nifty Next 50 rejig: Key changes in the index

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