The National Stock Exchange (NSE) has introduced 45 stocks in the futures and options (F&O) segment, effective from November 29, 2024. Based on the new inclusions, foodtech major Zomato and Jio Financial Services, a part of Reliance Group, are likely to be included in the Nifty 50 benchmark index, domestic brokerage JM Financial says in a note.
According to the brokerage, auto major Eicher Motors and state-owned oil marketing company BPCL could exit from the benchmark.
“For the March rebalancing, the index provider assumes an average free float market cap that prevailed between the period August 1 to January 31. Based on the average free float market cap that prevailed as of yesterday, we expect these changes in the Nifty,” the brokerage says in a note.
As per norms, it is mandatory for a stock to be a part of the F&O segment to be included in the Nifty 50 index.
The report noted that inclusion of Zomato in the Nifty50 index would lead to fund inflows of $607 million, while it would lead to inflows of $372 in case of Jio Financial Services.
On the other hand, the exclusion of BPCL and Eicher Motors from the Nifty50 index could lead to fund outflows of $223 million and $239 million, respectively.
Reacting to the news, shares of Zomato jumped as much as 4.6% to hit a high of ₹270.55 on the BSE, while Jio Financial Services gained 6.8% to touch an intraday high of ₹319.80 apiece.
Meanwhile, BPCL shares dropped 3% to ₹296.50, while Eicher Motors stock jumped 8.3% to ₹4,972.50 as investors cheered its September quarter earnings.
NSE has added 45 stocks in the F&O segment, including Adani Energy, Adani Green Energy, Angel One, Adani Total Gas, Bank of India, BSE Ltd, CDSL, Cyient, Delhivery, Hudco, Nykaa, LIC, KPIT Technologies, Oil India, YES Bank, Tata Elxsi, Tube Investments, Paytm, PB Fintech, JSW Energy, Jindal Stainless, among others.
Early this month, capital market regulatory Securities and Exchange Board of India (SEBI) tightened the norms for F&O trading by increasing the entry barrier and making it more expensive for retail investors to trade in this segment. In a bid to curb the participation of retail investors in the highly risky F&O segment, the contract size for future contracts has been hiked to between ₹15 lakh to ₹20 lakh, effective from November 20, 2024. The contract size for F&O contracts is between ₹5 lakh to ₹10 lakh.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)
