Foodtech major Zomato became the first new age tech company to be included in the BSE Sensex today
Despite the addition to the index, shares of the company dipped as much as 3.08% from previous close to INR 273.15 during early hours of trading on December 23
At the broader level, Sensex surged over 500 points during early hours of trade today with the inclusion of Zomato
Foodtech major Zomato became the first new age tech company to be included in the BSE Sensex today. With the inclusion, the company replaced JSW Steel to join the likes of other companies, including ITC, Tech Mahindra, HDFC Bank and Reliance Industries among others featured in the benchmark index.
Sensex serves as both a benchmark and an investable index. It comprises 30 large, well-established, “financially sound companies” across key sectors. It is the oldest index in the country. The addition to Sensex will likely bring a fund inflow of $513 Mn into the stock as passive funds, according to brokerage Nuvama Alternative & Quantitative Research .
Despite the addition to the index, Zomato saw a dip in its share prices during early hours of trading today. Shares of the company dipped as much as 3.08% from previous close to INR 273.15 during early hours of trading on December 23. With this, the company’s market cap shrunk to $31.54 Bn as against $32 Bn at the end of the past week.
Pertinent to mention that shares of the new age tech company experienced a bearish investor sentiment in the past week as well. The company’s shares dipped by 2.27% in the week to end at INR 281.85 on Friday.
At the broader level, Sensex surged over 500 points during early hours of trade today with the inclusion of Zomato. As of 12:28 PM, Sensex stood at 78,489.14, up 0.57% from last Friday.
The BSE intimated about the inclusion of Zomato to the index on November 22. Besides, it also announced the addition of PB Fintech to BSE Sensex Next 50 and BSE 100. Zomato, along with Jio Financial Services, will also be added to the BSE Sensex 50 index.
This marks the second positive development for Zomato at the bourses in recent months. In November, the National Stock Exchange (NSE) added Zomato to the futures and options (F&O) stocks list. Other new-age tech stocks like Delhivery, Jio Financial Services, Paytm, Nykaa and PB Fintech were also added to the segment.
The development comes at a time when Zomato is seeing strong growth in its top and bottom lines. The company reported a net profit of INR 176 Cr in the second quarter of the ongoing fiscal year (Q2 FY25), up over 4X from the INR 36 Cr in the year-ago period.
Operating revenue also zoomed 68.5% to INR 4,799 Cr during the quarter from INR 2,848 Cr in Q2 FY24.
The company also undertook its first and largest fund raise as a listed entity at the end of November. The foodtech major raised INR 8,500 ($1 Bn) via its qualified institutional placement (QIP). The company plans to use the fresh funds to expand its quick commerce business Blinkit and support other key growth initiatives.
Shares of Zomato were trading 2.32% lower than previous close at INR 275.30 as of 12:38 PM.
