Sensex rejig: Zomato to replace JSW Steel; $513 m to flow

The BSE Sensex is scheduled to undergo its periodic rebalancing on Monday, December 23, with food delivery platform Zomato expected to replace steel giant JSW Steel in the 30-share benchmark index. The reshuffle is expected to drive $513 million in inflows into Zomato, while JSW Steel could see outflows of $252 million, according to estimates by brokerage firm Nuvama.

This periodic rebalancing of the Sensex, overseen by Asia Index Private Ltd, ensures the benchmark index remains representative of India’s evolving market dynamics.

Brokerage firm Nuvama projects significant fund flows as institutional investors adjust portfolios to align with the updated index composition. Zomato is expected to attract $513 million in inflows, reflecting heightened investor interest in the tech-driven business. Meanwhile, JSW Steel, which will exit the index, is likely to witness $252 million in outflows.

Zomato’s market inclusion comes on the back of robust stock performance. The company’s shares have surged 43% in the last six months and over 126% over the past year, compared to the Sensex’s 10.7% returns during the same period. Meanwhile, JSW Steel has given nearly 9% returns in one year.

As of December 21, Zomato’s market capitalisation stood at Rs 2.72 lakh crore, surpassing JSW Steel’s Rs 2.24 lakh crore.

The rebalancing extends beyond the Sensex to the BSE 100 index, which will see six new entrants, including Jio Financial Services, Suzlon Energy, Adani Green Energy, Adani Power, Samvardhana Motherson International, and PB Fintech (Policybazaar). They will replace stocks like Ashok Leyland, P.I.Industries, IDFC First Bank, Indian Railway Catering and Tourism Corporation (IRCTC), UPL and APL Apollo Tubes.

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