Zomato Joins BSE Sensex, Becomes First New-Age Company to Enter Benchmark Index!

Food delivery giant Zomato is set to replace JSW Steel in the 30-share BSE Sensex, marking a historic moment as it becomes the first new-age company to enter the benchmark index. This change, announced by BSE’s subsidiary Asia Index Pvt Ltd, will take effect on December 23, 2024. The reconstitution also includes updates to indices like BSE 100, BSE Sensex 50, and BSE Sensex Nifty 50.

Zomato’s Entry: A Milestone Achievement

Zomato’s inclusion in the Sensex comes after an impressive rally in its stock over the past year, delivering a remarkable 130% return. In comparison, the Sensex has posted a 12-month return of 20%. On the last trading day before the announcement, Zomato’s stock closed at ₹264.15 per share, down by 0.97%.

Performance Comparison

• Zomato: 130% return over the past year.
• Sensex: 20% return over the same period.
• JSW Steel: Recorded a 27% gain in the last year.

Other Key Changes in Indices

In addition to Zomato’s entry into the Sensex, several other changes are being made across different indices:

New Entrants to BSE 100

The BSE 100 index will see six new entrants:

• Jio Financial Services
• Suzlon Energy
• Adani Green Energy
• Adani Power
• Samvardhana Motherson International
• PB Fintech

These will replace:

• Ashok Leyland
• PI Industries
• IDFC First Bank
• IRCTC
• UPL
• APL Apollo Tubes

Changes in BSE Sensex 50

In the BSE Sensex 50 index, Zomato, Jio Financial Services, and Hindustan Aeronautics Limited (HAL) will replace:

• HDFC Life Insurance Company
• Bharat Petroleum Corporation (BPCL)
• LTIMindtree

Expansion of Futures and Options Contracts

BSE also announced the introduction of futures and options (F&O) contracts for 43 stocks, starting from December 13, 2024. Major names entering the F&O segment include:

• Adani Energy Solutions
• Adani Green Energy
• Adani Total Gas
• One97 Communications (Paytm)
• Yes Bank
• Avenue Supermarts (DMart)
• Life Insurance Corporation of India (LIC)
• Zomato
• Jio Financial Services

Governance Update

In a circular released after market hours, BSE confirmed that the Securities and Exchange Board of India (SEBI) has approved Subhasis Chaudhuri as the new Chairman of the exchange’s Governing Board.

Conclusion

Zomato’s inclusion in the Sensex is a significant milestone, reflecting the growing influence of tech-driven, new-age companies in India’s financial markets. As it joins the ranks of established blue-chip companies, this move is expected to attract more institutional investments and enhance its visibility among investors. The changes to various indices highlight an evolving landscape in India’s stock market, where innovative companies are gaining recognition alongside traditional industries.