Zomato shares rise over 7% on Sensex entry, replacing JSW Steel

Shares of Zomato rallied as much as 7.6 per cent on Monday, buoyed by the stock’s entry into the benchmark Sensex. On Friday, BSE's index composition arm announced that the food delivery major will replace JSW Steel in the 30-share index next month. The addition is expected to channel nearly Rs 4,000 crore into the stock on account of passive buying.

 

Shares of Zomato finished at Rs 274, up 3.6 per cent, valuing the company at Rs 2.42 trillion. Zomato’s Sensex entry follows the stock’s inclusion in the futures and options (F&O) segment. Zomato is also expected to be added to several other indices.

 

“This is the first of many potential inclusions for Zomato in local indices over the next few months and is due to the inclusion of the stock in the F&O segment,” said insight provider Brian Freitas of Periscope Analytics, who publishes on Smartkarma.

 

Besides Sensex, Freitas expects Zomato to be added to the Nifty200 Momentum 30 Index by December 30 and later to the premier Nifty50 index by March 28. Meanwhile, shares of JSW Steel fell over 2 per cent, as its exclusion is expected to lead to selling worth Rs 2,208 crore.