How Will Zomato and Jio Financial Impact Nifty 50 PE ?

Zomato and Jio Financial Services will join the Nifty 50 index on March 28, 2025. They replace Bharat Petroleum Corporation Ltd. (BPCL) and Britannia Industries. This change will increase the index’s valuation by 2.5%. Zomato and Jio Financial Services have higher price-to-earnings (P/E) ratios than BPCL and Britannia. This makes Nifty 50 more expensive.

The inclusion of these tech-driven businesses shows the growing influence of technology in India’s financial market. This shift is part of the National Stock Exchange’s (NSE) semi-annual index reshuffle.

The entry of Zomato and Jio Financial Services will result in significant fund flows from passive investors. Analysts estimate ₹5,900 crore for Zomato and ₹3,000 crore for Jio Financial Services. Britannia and BPCL will see selling worth ₹2,300 crore and ₹1,900 crore.

Overall, the changes in the Nifty 50 index highlight the evolving market landscape. Technology and innovation are driving growth.