Introduction

The National Stock Exchange (NSE) has announced a significant reshuffle in its Nifty 50 index, marking the inclusion of Zomato Ltd. and Jio Financial Services Ltd., while Bharat Petroleum Corporation Ltd. (BPCL) and Britannia Industries Ltd. will exit. This change, effective NSE Nifty 50 Rejig March 28, 2025, is part of NSE’s semi-annual review and reflects the evolving market landscape, where technology and digital-era stocks are gaining more prominence.

This development signals the growing acceptance of new-age businesses in India’s most widely tracked equity index, demonstrating the increasing clout of fintech and digital commerce players in the Indian economy.

Understanding Nifty 50 and Its Selection Criteria

What is the Nifty 50 Index?

The Nifty 50 is India’s benchmark stock index, representing the top 50 companies across various sectors listed on the NSE. It serves as a barometer of the Indian stock market and is closely monitored by institutional and retail investors.

How Stocks Qualify for Nifty 50 Inclusion?

NSE follows a strict methodology for selecting stocks in its periodic index rebalancing. Some key criteria include:

• The stock must be part of the Futures & Options (F&O) segment.
• The company’s free-float market capitalization over six months must be at least 1.5 times that of the smallest company being removed.
• Liquidity, trading volume, and overall market representation are also considered.

Zomato and Jio Financial met these requirements, whereas BPCL and Britannia no longer did.

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Key Changes: Companies Entering and Exiting Nifty 50

As part of the NSE’s semi-annual index reshuffle, two major digital-era companies, Zomato Ltd. and Jio Financial Services Ltd., will be added to the NSE Nifty 50 Rejig index, replacing Bharat Petroleum Corporation Ltd. (BPCL) and Britannia Industries Ltd. This move reflects the shifting market dynamics, where technology-driven businesses are gaining more significance over traditional sectors like oil & gas and FMCG.

New Additions to Nifty 50

1. Zomato Ltd.

Market Capitalization: ₹1,69,837 crore

Industry: Online food delivery and grocery services

Key Growth Factors:

• One of India’s largest digital consumer platforms, Zomato, has revolutionized the food delivery ecosystem.
• The company has experienced rapid revenue growth driven by increased customer adoption, expansion into quick commerce (Blinkit), and enhanced operational efficiencies.
• Zomato’s stock has gained momentum due to its improving financial performance and strong investor sentiment.

2. Jio Financial Services Ltd.

Market Capitalization: ₹1,04,387 crore

Industry: Fintech and digital lending

Key Growth Factors:

• A subsidiary of Reliance Industries Ltd., Jio Financial has rapidly expanded its presence in India’s growing digital finance ecosystem.
• With strong backing and strategic tie-ups, it is poised to be a leading player in digital payments, lending, and wealth management.
• Jio Financial’s inclusion highlights the increasing importance of fintech firms in India’s financial markets.

Companies Exiting Nifty 50

1. Bharat Petroleum Corporation Ltd. (BPCL)

Market Capitalization: ₹60,928 crore

Industry: Oil & Gas (State-run Oil Marketing Company)

Reasons for Exclusion:

• BPCL has faced volatility due to fluctuating crude oil prices and regulatory uncertainties.
• The company’s growth has been moderate, with challenges in maintaining margins due to government pricing controls and subsidy policies.

2. Britannia Industries Ltd.

Market Capitalization: ₹64,151 crore

Industry: Fast-moving consumer goods (FMCG)

Reasons for Exclusion:

• While Britannia remains a top player in the FMCG segment, it has faced increased competition and rising input costs, which have led to slower revenue growth.
• The FMCG sector has seen muted expansion, and investors have shifted focus toward high-growth digital businesses.

Why do these Changes Matter?

Zomato and Jio Financial have significantly higher market capitalization and sectoral influence than BPCL and Britannia, making them more representative of India’s evolving market trends. Their inclusion in the NSE Nifty 50 Rejig index reflects the rise of digital-first businesses, marking a shift toward a more technology-oriented stock market landscape.

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Impact of Nifty 50 Rebalancing on Stock Performance

How Index Inclusion Affects Stocks

When a stock enters the NSE Nifty 50 Rejig, it attracts passive investment flows from domestic and international funds tracking the index. This leads to:

• Higher trading volumes and price appreciation.
• Increased visibility among global investors.
• Stronger credibility and confidence in business fundamentals.

Projected Fund Flows After Rebalancing

According to Nuvama Wealth Management, the reshuffle is expected to generate:

• ₹5,250 crore worth of inflows into Zomato shares.
• ₹2,660 crore worth of inflows into Jio Financial shares.
• ₹1,635 crore outflow from BPCL and ₹1,950 crore outflow from Britannia as funds adjust their holdings.

These figures indicate that the Nifty 50 rebalance will positively impact Zomato and Jio Financial’s stock prices while putting pressure on BPCL and Britannia.

Broader Market Implications of NSE’s Decision

1. Growing Influence of Digital Economy Stocks

The inclusion of Zomato and Jio Financial marks a paradigm shift in India’s stock market, where:

• Tech-driven and consumer-focused businesses are replacing traditional sectors.
• More companies from the digital commerce and fintech space could enter the index in the future.
• India’s stock market is evolving to reflect a tech-savvy consumer base.

2. Impact on Passive Investment Funds

The ₹3.8 lakh crore in passive funds tracking the Nifty 50 will now have exposure to Zomato and Jio Financial. These stocks may:

• See increased demand from index funds and ETFs.
• Benefit from higher market liquidity and broader investor participation.

3. Shift in Sectoral Representation

• The consumer tech sector (Zomato) and fintech sector (Jio Financial) gain higher representation.
• The oil & gas (BPCL) and FMCG (Britannia) sectors lose weightage.
• This signals a move towards a more diversified, tech-driven index composition.

What This Means for Retail and Institutional Investors

1. Portfolio Rebalancing Strategies

• Investors holding BPCL and Britannia should analyze potential outflows and decide on repositioning.
• Long-term investors may benefit from adding Zomato and Jio Financial due to expected fund inflows.

2. Increased Volatility Around March 28, 2025

• Traders can expect price fluctuations in the impacted stocks as fund houses adjust their portfolios.
• Passive fund adjustments may create short-term trading opportunities.

3. Future Trends in Nifty 50 Inclusions

• More digital-first companies could join in future index rebalances.
• Tech-driven firms such as Swiggy, Ola Electric, or Paytm could be potential contenders.
• Investors should track NSE’s semi-annual review process for early insights into upcoming changes.

Conclusion

NSE’s latest index rejig marks a major shift in India’s stock market. Zomato and Jio Financial entered the NSE Nifty 50 Rejig, signalling the growing dominance of technology-driven businesses. This reshuffle also highlights the declining weightage of traditional sectors like oil and gas and FMCG, while passive investment funds play an increasing role in stock performance.

As the March 28, 2025 implementation date approaches, Jainam Broking Ltd. encourages investors to stay informed about fund flows, price movements, and sectoral trends. The coming months will define how this change reshapes market dynamics and future Nifty 50 rebalancing.

Source: Mint, Business Standard