Zomato and Jio Financial Services could see higher fund allocation and these stocks could witness sustained buying over the next few trading sessions as they will be included in Nifty50 benchmark index. In a significant move set to reshape India's stock market landscape, the National Stock Exchange (NSE) has announced a reshuffling of its benchmark indices, including the Nifty50, Nifty100, and Nifty200. This semi-annual adjustment, effective March 28, 2025, reflects shifts in market capitalization and investor sentiment. The most notable changes include the inclusion of Zomato and Jio Financial Services in the Nifty50, replacing state-owned Bharat Petroleum Corp Ltd. (BPCL) and Britannia Industries. These changes, based on average free float market cap calculations between August 1, 2024, and January 31, 2025, highlight evolving sectoral dynamics in India’s equity market.

Zomato and Jio Financial Services Enter Nifty50

The addition of Zomato and Jio Financial Services to the Nifty50 marks a significant shift toward digital and fintech-oriented stocks. Zomato, India's leading online food delivery platform, has solidified its presence in the consumer tech space, demonstrating consistent revenue growth and improved profitability metrics. Jio Financial Services, a Reliance Group entity, is making waves in the fintech and digital payments ecosystem, positioning itself as a formidable competitor in India's evolving financial landscape.

The removal of BPCL and Britannia Industries signals a pivot away from traditional energy and FMCG stocks in favor of technology-driven, high-growth companies. Both BPCL and Britannia, while established blue-chip firms, have witnessed increased competition and changing market dynamics that may have contributed to their exclusion.

Expansion of the Nifty100 Index

The Nifty100 index, a broader representation of India’s large-cap stocks, will also see significant rebalancing. Bajaj Housing Finance, CG Power and Industrial Solutions, and Hyundai Motor India will be newly added, reflecting the growing demand for housing finance, industrial innovation, and India's expanding automobile sector.

On the other hand, stocks that will be removed from the Nifty100 include:

Adani Total Gas
Bharat Heavy Electricals Limited (BHEL)
Indian Railway Catering and Tourism Corporation (IRCTC)
National Hydroelectric Power Corporation (NHPC)
Union Bank of India
These removals underscore shifting investment trends, particularly a decline in traditional infrastructure-heavy companies and state-owned enterprises in favor of private sector-led growth stories.

Major Overhaul in the Nifty200 Index

The Nifty200 index, which encompasses both large and mid-cap stocks, will undergo a more extensive restructuring, incorporating emerging leaders from various industries. Glenmark Pharma, Motilal Oswal Financial Services, National Aluminium Company (NALCO), and NTPC Green Energy are among the notable additions.

Additionally, the inclusion of Ola Electric and Premier Energies highlights the increasing investor focus on electric vehicles and renewable energy, both of which are poised to be key drivers of India's economic future. Furthermore, Vishal Mega Mart and Waaree Energies have secured their place in the Nifty200, reflecting strong interest in the retail and clean energy sectors.

The stocks set to exit the Nifty200 include:

Balkrishna Industries
Delhivery
Fertilisers and Chemicals Travancore
IDBI Bank
Indian Overseas Bank
JSW Infrastructure
MRPL
NLC India
Poonawalla Fincorp
Sundaram Finance
Tata Chemicals
This shift further emphasizes a market-driven transition from traditional manufacturing and state-backed enterprises toward high-growth, technology-oriented businesses.

Market Implications and Investor Takeaways

The NSE’s semi-annual index reshuffle plays a critical role in shaping investor sentiment, as stocks included in major indices often witness increased liquidity and institutional interest. Passive funds tracking these indices will need to rebalance their portfolios accordingly, potentially triggering short-term price fluctuations.

Key takeaways for investors include:

Zomato and Jio Financial Services' inclusion in Nifty50 positions them as major players in India's digital economy.
Stronger emphasis on technology, fintech, electric vehicles, and renewable energy highlights the market’s future growth direction.
State-run enterprises and traditional infrastructure companies face challenges in maintaining index inclusion, signaling a preference for private sector innovation.
With these structural shifts in India's equity market, investors should reassess their portfolios, taking into account the growing prominence of consumer technology, fintech, and sustainability-focused investments.