The Nifty 50 index is undergoing a semi-annual rebalancing process, which will see the addition of Zomato and Jio Financial Services to the index. This change is expected to bring in a passive inflow of $544 million and $278 million, respectively. On the other hand, Bharat Petroleum Corp Ltd (BPCL) and Britannia Industries Ltd will exit the index, leading to significant outflows. The rebalancing process will also see weightage adjustments for Grasim Industries and Bajaj Finance.
Other stocks that will be added to the Nifty 100 and Nifty Next 50 indices include Indian Hotels, Bajaj Housing Finance, Hyundai Motor India, CG Power, and Swiggy. Meanwhile, 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 from these indices.
According to JM Financial, BPCL’s removal could lead to outflows of $204 million, while Britannia’s exclusion is likely to result in outflows of $215 million. On the other hand, Indian Hotels Company is expected to 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 changes will be implemented at the close of trade on Thursday, and passive flows from index funds and ETFs tracking the Nifty indices are expected to drive significant buying and selling in the impacted stocks.