(Bloomberg) -- Investors applauded the addition of Zomato Ltd. to India’s BSE Sensex, marking the first new age technology company to join the key equity gauge.

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Shares of the food delivery and quick commerce platform surged as much as 7.6%, the most since Sept. 5, on the announcement from BSE Ltd.’s index compiler. Zomato will replace JSW Steel Ltd., whose shares fell as much as 3.2% Monday.

For the Sensex, which was launched in 1986, it’s a watershed moment demonstrating the growing importance of India’s young internet firms for global money managers. The 30-member index is currently dominated by banks, conglomerates like Reliance Industries Ltd. and software firms such as Infosys Ltd. The changes take effect December 23.

“I think what is happening here is exactly what happened in China” with companies like Alibaba Group Holding Ltd. and Tencent Holdings Ltd., said Abhay Agarwal, founder and fund manager at Piper Serica Advisors Pvt. New tech firms like Zomato “have figured out a way to reach millions of customers in a cost effective and profitable manner, and that trend is not stopping.”

The Sensex entry for Zomato comes after a more than 260% gain in the stock since its listing just over two years ago. That’s pushed its valuation to around $30 billion.

The move also follows the bourse’s recent decision to introduce futures and options on Zomato’s stock as well as those of new tech peers including PB Fintech Ltd. and One 97 Communication Ltd. Rules from BSE’s Asia Index Pvt. unit mandate trading of derivatives as a key criteria for index inclusion.

Among the first generation of internet unicorns to tap India’s capital markets, Zomato has won favor with its focus on profitability and expansion beyond food through its acquisition of Blinkit. It’s now looking to raise about $1 billion in a share placement amid the recent stock market debut of rival Swiggy Ltd.

Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research, estimates Zomato’s inclusion in the Sensex will attract $450 million worth of buying by passive funds, on a net basis. He expects the stock to be included in the benchmark NSE Nifty 50 Index in March.

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