Zomato shares jump 7% on Sensex inclusion; JSW Steel down 2%

Shares of Zomato rallied over 7% in early trade on Monday as the online food delivery company is set to be included in the Sensex pack, effective from December 23. The Deepinder Goyal-led company will replace JSW Steel in the 30-stock benchmark index as part of the latest reconstitution announced by Asia Index Private Ltd, a subsidiary of BSE.

Cheering the news, Zomato shares jumped as much as 7% to hit a high of ₹282.85 on the BSE today. Snapping two sessions of losing streak, the foodtech stock opened 3.3% higher at ₹273 against the previous closing price of ₹264.15.

At the time of reporting, the shares of Zomato were up 6% at ₹279.95, with a market capitalisation of ₹2.47 lakh crore. The stock is down 6% from its all-time high level of ₹298.20 touched on September 24, 2024, while it has risen more than doubled from its 52-week low of ₹112.80 hit on November 24, 2023.

On the other hand, shares of JSW Steel slipped 2.3% to hit a low of ₹952.85 in the first hour of trade so far, while the market cap dropped to ₹2.33 lakh crore. Early today, the JSW Group stock opened 1% higher at ₹986.40 after ending up by 3.5% in the previous session, but it soon lost momentum and slipped into negative terrain. The counter touched its 52-week high and 52-week low of ₹1,063.35 and ₹762, on October 4, 2024, and March 14, 2024, respectively.

Foodtech major Zomato is also expected to be included in the Nifty 50 benchmark index, domestic brokerage JM Financial said in a recent report. The report noted that inclusion of Zomato in the Nifty50 index would potentially lead to fund inflows of $607 million.

Zomato is one of the preferred stocks among new-age companies, with the company delivering consistent returns in the last one year amid improvement in its financial performance. The largecap stock has risen 146% in a year; 53% in six month; 125% in the calendar year 2025; and 10.5% in the last one month.

For the second quarter ended September 30, 2024, Zomato reported multifold growth in its consolidated net profit to ₹176 crore, compared to ₹36 crore in the year ago period. The revenue from operation surged 68% year-on-year (YoY) to ₹4,799 crore, driven by improvement in margins in the food delivery business and expansion of its quick-commerce business. On the operating front, EBITDA stood at ₹230 crore, while the margin was at 4.7%, up 50 basis points quarter-on-quarter (QoQ).

On the other hand, the company’s quick commerce arm, Blinkit’s GOV grew 24.6% QoQ and 122.2% YoY to ₹6,130 crore, aided by 152 stores net additions during the quarter. Quick-commerce’s adjusted revenue was ₹1,160 crore, up 22.7% QoQ and 128.9% YoY.

The board of Zomato has also approved a proposal to raise ₹8,500 crore via a qualified institutional placement (QIP) of shares amid rising competition in the quick-commerce space after its rival Swiggy recently raised ₹11,300 crore through initial public offering (IPO) route.

This capital raise will ensure Zomato maintains financial flexibility, allowing it to continue scaling Blinkit while countering competitive pressures effectively, says Motilal Oswal in a note. “It will also allow Zomato to change its ownership structure in favor of Indian investors – this should allow the company to hold inventory in its quick commerce business.” 

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