Nifty reshuffle: A delivery startup and a fintech firm could edge out a biscuit major and an energy giant

livemint.com:

Subscribe to enjoy similar stories. The Nifty 50’s much-anticipated reshuffle on 27 March could see two new-age companies debut at the expense of established players as well as trigger significant fund inflows and outflows, reshaping investor portfolios and sectoral representation within the benchmark index.

According to Nuvama Alternative & Quantitative Research, food delivery giant Zomato Ltd and Jio Financial Services Ltd are poised to replace state-owned Bharat Petroleum Corporation Ltd (BPCL) and packaged consumer goods company Britannia Industries Ltd on the Nifty 50. An official announcement is expected later this month.

Zomato made history on 23 December by becoming the first new-age company to be included in the elite BSE Sensex index, which comprises 30 stocks, while Jio Financial Services made it to the BSE Sensex 50. Also read | FPIs are betting on these stocks despite the market downturn The reshuffle, based on free-float market capitalization, could also drive substantial passive fund inflows into Zomato and Jio Financial Services, estimated at $631 million and $320 million, respectively.

Conversely, BPCL and Britannia’s exclusion may lead to estimated outflows of $201 million and $240 million, respectively. “In our assessment, Hero MotoCorp narrowly holds its position, saved by just ₹1 crore higher free-float market capitalization," Abhilash Pagaria, head of Nuvama, said in a recent report.

“The competition for spots has been intense, with both Britannia and Hero MotoCorp giving each other a tough fight to maintain their seats in the Nifty 50." "The potential reshuffle will mark a significant shift in the index. Zomato, having bounced back from its lows, is one of the strongest outperformers and represents