In a media appearance, SEBI chief Madhabi Puri Buch discussed updated F&O standards; a formal circular is anticipated soon. Sebi's press conference, according to Nuvama Alternative & Quantitative Research Analysis, provided it more confidence in the prompt introduction of new F&O members and the removal of names that no longer meet the requirements.
"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 stated.
According to the domestic brokerage, Trent Ltd. and Bharat Electronics Ltd. (BEL) may replace LTIMindtree Ltd. and Divis Labs in the Nifty 50 if there is no F&O inclusion. In that scenario, BEL may see $437 million in inflows while Trent might see $463 million in passive inflows. The passive outflow might be $232 million for Divis Labs and $232 million for LTIMindtree.
Before the third week of August 24, Jio Financial Services Ltd. and Zomato Ltd. would produce passive inflows of $466 million and $491 million, respectively, if they joined the F&O division. Trent would then continue to be added to the Nifty 50 club. In such a case, Divis Labs and LTIMindtree would be joined on the exit list by Eicher Motors Ltd ($262 million).
In a third possibility, LTIMindtree will take its place if JFS or Zomato enters the F&O business before the third week of August. In that scenario, Jio Financial's Nifty 50 debut would take precedence over LTIMindtree. According to Nuvama, LTIMindtree and Divis Labs would witness departures if Zomato and Trent were included in the Nifty 50.
