Jio Financial Services shares will be dropped from all the S&P BSE indices including Sensex with effect from tomorrow i.e. Friday, September 1, said BSE in a circular.
Jio Financial Services Ltd (JFSL) is a demerged non-banking financial services (NBFC) unit of Reliance Industries Ltd.
“Asia Index Private Ltd recently announced that effective prior to the open of trading on Friday, September 01, 2023 , Jio Financial Services will be removed from all the S&P BSE Indices following its listing on Monday, August 21, 2023, due to its spin-off from its parent, Reliance Industries,” said the notice on BSE.
The JFSL stock did not hit the lower circuit in the previous two trading sessions, and today’s session saw the Jio Financial Services share price conclude 0.41% higher at ₹233.65 apiece on BSE. According to the guidelines, JFSL will be taken out of the S&P BSE indices today. If the JFSL stock had hit the low circuit limit today, the exchanges would have extended the date of removal of JFSL shares from indices.
The bourses twice extended the removal of JFSL shares from the indices after the shares hit lower circuit for four consecutive session post listing .
Also Read: Jio Financial Services share exclusion from Sensex, other indices postponed by another 3 days to August 31
“JFSL has not hit the lower circuit on Tuesday, August 29, 2023 , and Wednesday, August 30, 2023 . As announced that should JFSL hit lower circuit on the 3rd day i.e., Thursday, August 31, 2023 the removal of JFSL from all the S&P BSE Indices will be postponed. In order to provide certainty to clients, the Index Committee has determined that a 2 PM IST cut-off time will be applied for the lower circuit limit assessment.
If JFSL does not hit the lower circuit before the cut-off time, the company will be dropped from all the S&P BSE Indices effective prior to the open of trading on Friday, September 01, 2023,” said BSE in a notice.
On Wednesday, August 30, Jio Financial Services share price extended gains for the second consecutive session on Wednesday. Jio Financial Services shares were locked at 5% upper circuit of ₹232.70 apiece on the BSE.
On NSE, JFSL shares were also at 5% upper circuit limit at ₹231.25 apiece, becoming the top Nifty gainer.
Also Read: Jio Financial Services share price extend gains; locked at 5% upper circuit; here’s why
Jio Financial Services was listed on the stock exchanges on August 21 after its demerger with the billionaire Mukesh Ambani-led oil-to-telecom conglomerate Reliance Industries.
The stock was listed at ₹265 apiece on the BSE and ₹262 per share on the NSE as compared to its discovered price of ₹261.85 apiece. Since listing, the stock has been under selling pressure by institutional investors.
Also Read: Jio Financials lists at ₹262 per share on NSE and ₹265 per share on BSE
What do analyst say?
What happens next in Jio Financial Services? – A Million Dollar Question in every investors mind, says Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities
According to Tapse, post disappointing listing on 21st August 23 it was on lower circuits for few initial days due the selling pressure from funds and in the T2T segment where volatility was controlled due to T2T segment rules.
“Now post removal from Sensex, I believe volatility would reduce or neutralise as it is also coming out of T2T group on the same day completing 10 days under T2T post listing. Now the demand and supply in Jio Financial Services shares would get normalised based on events and performance data points on the business activities. Technically, I believe risky traders can look to Accumulate in -2 tranches up to 218 level,” explained Prashanth.
According to Mohit Gulati, CIO & Managing Partner of ITI Growth Opportunities Fund, MSCI and FTSE indices will retain Jio Financial in the index without any impact on inflow or outflow; as long as they hold the fort the exclusion from Sensex wont hurt the stock. Also if price limits are met then NIFTY will also retain JFSL in the index. So only Sensex exclusion will be an isolated event.
Also Read: FTSE withdraws decision to remove Jio Financial from global indices
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