On March 28, 2025, Jio Financial Services (JFSL) and Zomato officially joined the Nifty 50 index, marking a significant moment in the Indian stock market. This inclusion is expected to bring both opportunities and challenges for investors as they navigate the changing landscape of the index. JFSL's shares closed at ₹225.90, reflecting a 1.6% increase on the Bombay Stock Exchange (BSE) the previous day, while Zomato's stock is closely monitored for its potential growth.
JFSL made headlines earlier when it infused ₹1,000.24 crore into its wholly-owned subsidiary, Jio Finance (JFL), by subscribing to 1.73 crore equity shares at ₹10 each. This capital infusion is intended to bolster JFL's ongoing business operations, which is crucial as it prepares for the increased scrutiny and expectations that come with being a Nifty 50 constituent.
In conjunction with its inclusion in the Nifty, Jio Financial is expected to see a surge in trading activity and investor interest. Mayuresh Joshi, Head of Equity Research at William O'Neil India, addressed concerns regarding the Nifty's valuation uptick, noting that the overall Nifty earnings per share (EPS) for FY26 and FY27 is projected to remain stable despite the higher-valued additions of stocks like Jio and Zomato. Joshi emphasized, "The market will likely factor in EPS moderation as Zomato's profitability adjusts and Jio's growth unfolds."
Technical analyst Mitesh Panchal has expressed a preference for Zomato, recommending a buy only if it closes above ₹250, with potential targets of ₹230 and ₹240. He advised a stop loss at ₹203. For Jio Financial Services, Panchal suggested waiting for a weekly close above ₹240, indicating a cautious approach as the stock begins its journey in the Nifty.
The performance of newly included stocks in the Nifty has been a topic of discussion among investors. Historically, stocks that enter the index have experienced varied outcomes. For instance, Trent and Bharat Electronics, which joined the Nifty in September 2024, faced challenges soon after their inclusion. Trent saw a decline of 31% over six months, while Bharat Electronics managed a modest recovery after an initial drop.
Looking at Jio and Zomato's potential trajectory, analysts are keen to see how they will perform in the months ahead. Shriram Finance, which joined the index in March 2024, has been one of the consistent performers, delivering positive returns across all timeframes post-inclusion. In contrast, LTIMindtree's brief stint in the Nifty ended with its exclusion in September 2024, leading to a steep correction in its stock price.
As the market opened on March 28, it faced selling pressure, with the Sensex declining by 301.76 points, or 0.39%, to 77,304.67, and the Nifty 50 dropping by 87.60 points, or 0.37%, to 23,504.35. Despite this, Jio Financial's recent performance was a bright spot, with its shares gaining 2.18% to ₹230.70, following its entry into the Nifty.
Investors are also keeping a close eye on broader market trends, including the impact of U.S. reciprocal tariff threats and upcoming economic indicators. The market is poised for a three-day break due to the Id-Ul-Fitr holiday, with trading set to resume on April 1, 2025.
In the context of these developments, it’s essential to consider the resilience of certain sectors. While the Nifty IT, pharma, healthcare, realty, and auto sectors experienced selling pressure, stocks in the oil & gas and FMCG sectors showed moderate gains. ONGC, for instance, surged by 4.88% to ₹254, buoyed by an investment of ₹3,300 crore in its subsidiary, ONGC Green Ltd.
As Jio Financial and Zomato settle into their new roles within the Nifty 50, market watchers will be eager to see how their performances evolve and what strategies investors will employ in response to these changes. With the Nifty's rebalancing, the inclusion of these two companies adds a layer of complexity to the index that could influence investor sentiment and stock valuations across the board.
Overall, the entry of Jio Financial and Zomato into the Nifty 50 index represents a pivotal moment for both companies as they navigate the challenges and opportunities that come with being part of India's premier stock market index. Investors will need to stay informed and agile as they respond to the shifts in market dynamics and the evolving performance of these newly included stocks.
