Zomato shares fall ahead of $513 million inflows due to Sensex rejig on Thursday

Shares of Zomato Ltd., the food delivery aggregator, were trading with losses of as much as 3% on Thursday, December 19.

Zomato is all set to replace JSW Steel as Sensex constituent tomorrow (December 20). The food delivery giant is all set to enter BSE Sensex’s 30-share frontline index as part of the planned rejig, according to a report by brokerage firm Nuvama Institutional Equities.

The inclusion is expected to result in $513 million in passive inflows for Zomato and $252 million in outflows for JSW Steel, Nuvama said.

This would make Zomato the first new-age tech stock to enter the 30-share frontline index.

Mahindra & Mahindra Ltd, ITC Ltd, Infosys Ltd and Sun Pharma are among Sensex stocks, which may see marginal passive outflows due to reduction in their weightages in the 30-pack index, as per Nuvama.

The planned index rejig comes at a time when Zomato has seen an unfazed rally in the last one year. The stock has jumped over 120% in the last 12 months, outperforming benchmark Sensex, which has given about 11% returns during the same period.

Out of the 26 analysts that have coverage on the food delivery aggregator, 24 of them have a ‘Buy’ recommendation, while the other two have a ‘Sell’ rating.

Shares of Zomato are currently trading 1.59% lower in a weak market today. The stock has made an intraday high of ₹290.20 and an intraday low of ₹284.70. The stock has now doubled so far this year with returns of 130%.