Sensex rejig on Monday: Zomato replaces JSW Steel, $513m inflow expected

The BSE Sensex is set 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. According to estimates by brokerage firm Nuwama, the reshuffle is expected to generate an inflow of $513 million into Zomato, while JSW Steel could see an outflow of $252 million.

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

Brokerage firm Nuwama projects significant fund flows as institutional investors adjust portfolios to align with the updated index composition. Zomato is expected to attract $513 million in investment, reflecting investor interest in the tech-based business. Meanwhile, JSW Steel, which will exit the index, is likely to witness an outflow of $252 million.

Zomato’s market inclusion comes on the back of strong stock performance. The company’s shares have gained 43% in the past six months and over 126% in the past year, compared to the Sensex’s 10.7% return during the same period. Meanwhile JSW Steel has returned around 9% in one year.

As of December 21, Zomato’s market capitalization stood at Rs. 2.72 lakh crore, compared to JSW Steel’s Rs. 2.24 lakh crore was crossed.

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, Samvardhan Motherson International and PB Fintech (Policy Market). They will replace stocks like Ashok Leyland, PI Industries, IDFC First Bank, Indian Railway Catering and Tourism Corporation (IRCTC), UPL and APL Apollo Tubes.

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