Jio Financial Services, Zomato shares in Nifty? How new F&O inclusion rules may influence next index rejig

SEBI chief Madhabi Puri Buch in media interaction spoke about a revised in F&O criteria with an official circular expected to be released shortly. Nuvama Alternative & Quantitative Research Analysis said Sebi's press conference gave it more confidence on the quick introduction of new F&O members and the removal of names that no longer fulfill the criteria.

"If we assume Jio Financial Services Ltd (JFS) and Zomato Ltd make it to the F&O segment before the third week of August, then there is a very high chance of them making it to the Nifty 50 in the September review," Nuvama said.

The domestic brokerage said if there is no F&O inclusion, Trent Ltd and Bharat Electronics Ltd (BEL) may likely join Nifty 50 in place of LTIMindtree Ltd and Divis Labs. In such a case, Trent could see $463 million passive inflows while BEL could see $437 million in inflows. Divis Labs could see $232 million in passive outflow, followed by LTIMindtree ($232 million).

If Jio Financial Services Ltd and Zomato Ltd enter F&O segment before the third week of August 24, they would generate passive inflows of $466 million and $491 million, respectively. In that case Trent would still join the Nifty 50 club. Eicher Motors Ltd ($262 million) will join LTIMindtree and Divis Labs in the exit list in such a scenario.

In a third scenario, if any one of JFS or Zomato enters F&O  segment before the third week of August, it will be replaced by LTIMindtree.  LTIMindtree would make way for Jio Financial Nifty 50 entry in such a case. In case Zomato and Trent are included in Nifty 50, LTIMindtree and Divis Labs would see exits, Nuvama said.