homemarket News

Zomato shares rise 3% as stock weightage in FTSE indices increase

Zomato shares rise 3% as stock weightage in FTSE indices increase

Zomato shares rise 3% as stock weightage in FTSE indices increase
Read Time2 Min(s) Read
Profile image

By Dipti Sharma  Aug 8, 2022 10:42:12 AM IST (Published)

Zomato share price: Shares of Zomato rose about 3 percent on Monday as investors bought shares of the food delivery platform after the stock’s weightage in FTSE indices was increased.

Shares of Zomato rose about 3 percent on Monday as investors bought shares of the food delivery platform after the stock’s weightage in FTSE indices was increased.

Recommended Articles

View All

At 9:38 am, shares of the food delivery company were trading 1.5 percent higher at Rs 55.3 on the BSE.
“FTSE will increase investability weight for Zomato from 17.2 percent to 24.9 percent,” said Abhilash Pagaria of Edelweiss Alternative & Quantitative Research.
Investible weight factor is the unit that shows how much portion of a company's total shares is available to the investors for trading freely on the stock exchange, Pagaria explained. He added that it is mainly used in computing market capitalisation under the free-float methodology.
He sees a buying of 19-20 million shares at the close of August 10.
Buying is likely by exchange-traded funds or mutual funds that mimic these indices.
The indices that will witness an increase in weightage for Zomato are FTSE All-World Index, FTSE MPF All-World Index, FTSE Global Large Cap Index and FTSE Emerging Index.
Mutual funds owned 2.4 percent stake in Zomato as of June end of 2022, whereas foreign portfolio investors (FPIs) held a 9.85 percent stake, as per shareholding pattern on BSE.
Samir Arora, Founder & Fund Manager of Helios Capital, still believes in the beleaguered Zomato, which has recovered from its lows in the past month.
Arora believes Zomato "is a guaranteed survivor" and adds that he was happy with the listing price of the stock too.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng