Jio Financial Services is set to be removed from NSE indices starting from September 7; do you own it?

The National Stock Exchange has made a significant announcement regarding Jio Financial Services Limited in its latest press release.

As per detail in the press release, NSE announced that Jio Financial Services, the demerged financial services division of Reliance Industries, will be removed from Nifty50 and other indices on September 7, 2023.

In addition to being removed from the Nifty 50 index, the stock will also be excluded from several other indices, including Nifty 100, Nifty 200, Nifty 500, and Nifty 50 Equal Weight, among others.

Following the index methodology, JFS did not trigger the price band on two consecutive trading days, specifically on September 4 and 5, at NSE. In response, the Index Maintenance Sub Committee (Equity) of NSE Indices Ltd has resolved to remove JFS from multiple indices, effective as of September 7, 2023 (close of trading on September 6, 2023), as stated in an announcement by NSE Indices Ltd on Tuesday.

It’s important to note that if JFS triggers the price band on September 6, the exclusion will not be postponed any further,” it further stated.

Jio Financial Services entered the market at Rs 265 per share on the BSE, representing a 1.2% premium over its determined price of Rs 261.85 on August 21. Simultaneously, it was listed on the NSE at Rs 262 per share, resulting in JFS commanding a market capitalization of Rs 1,68,362.03 crore.

Since its listing, the stock consistently hit the upper circuit for five consecutive days, including the listing day. On the fifth day, it reached a low of Rs 202.80 before experiencing a sudden recovery of around 10.50% from the intraday low, which occurred the day before the RIL AGM. After this, it stopped hitting the lower circuit and began hitting the upper circuit.

Recently, the stock exchanges announced a circuit limit filter for the stock, increasing it from 5% to 20%, effective from Monday, September 4.

Following this announcement, the stock surged over 10%, surpassing the listing price and reaching a high of Rs 266.95 compared to the listing price of Rs 262. However, it eventually retraced from this level and closed with a gain of 3.39% on NSE.

On September 1, the stock of Jio Financial was delisted from all BSE Indices, including the flagship Sensex.

At the Annual General Meeting (AGM) held last month, Mukesh Ambani, the Chairman of Reliance Industries, revealed the company’s plans to venture into the insurance sector, providing a range of life, general, and health insurance products.

Today, the stock commenced trading at Rs 246.90, and at the time of writing this article, it is currently trading at Rs 248.80. This represents a decrease of 2.47% compared to its closing price of Rs 255.10 from the previous day on the BSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.