Zomato shares may see $700 million inflow if it bags Nifty seat this month

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With the Nifty rejig about to take place in March, Zomato shares could see an inflow of $702 million if the company is included in the index, states a report by domestic brokerage firm JM Financial.

Zomato's potential inclusion is expected to bring a significant inflow of funds, estimated at $702 million, which could drive up demand for its shares. The expected share inclusion is 261.8 million.


The official announcement regarding Nifty constituent changes is anticipated in February 2025, with the changes taking effect from March 31, 2025.

This substantial inflow is attributed to the passive investment strategies of index funds and exchange-traded funds (ETFs) that track the Nifty 50 index.


The potential inclusion in the Nifty could also improve Zomato's visibility and liquidity, making it more attractive to a broader range of institutional investors. While the estimated inflow is a significant factor, the actual impact on Zomato's share price will depend on various market conditions and investor sentiment at the time of the rebalancing.

JM Financial also notes that the inclusion could have an impact of 3.8 days on the stock and a negative 14.8% one-month return.Also read: Torrent Power shares zoom 7% after 33% YoY jump in Q3 PAT

The index provider calculates eligibility based on the average free float market capitalization of companies between August 1st and January 31st for the stocks’ inclusion in the index.

Based on this criterion, Jio Financial Services, other than Zomato is predicted to be included in the Nifty, while Bharat Petroleum Corporation (BPCL) and Britannia Industries are likely to be excluded.

The shares of Zomato were trading flat at Rs 234.50 on the BSE at 11:40 am today.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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