Today shares of Jio Financials Services rallied and surged upto 9%

Jio Financial Services Ltd a recent debutant in the financial market continues to make waves as its shares surged. The stock climbed an impressive 8.84%, reaching an intra-day high of Rs 267 on the BSE, compared to its Friday closing price of Rs 245.30.

In a significant move, the Bombay Stock Exchange (BSE) has revised the circuit limit for Jio Financial Services from the existing 5% to a new limit of 20%, effective from today, September 4, 2023. This adjustment aims to curb excessive volatility, ensuring that stock prices remain within a prescribed range during trading sessions.

Notably the price bands for nine other companies including RailTel and India Pesticides have also been revised to 10%. This circuit filter mechanism plays a crucial role in maintaining stability in the stock market by limiting the maximum permissible price fluctuations within a trading day.

Furthermore, the BSE took another noteworthy step by removing Jio Financial from all its indices including the benchmark Sensex, on September 1, 2023. This exclusion followed a consistent uptrend in Jio Financials share price, indicating its growing strength in the market. According to exchange norms, a spun off entity to be excluded from indices must have traded for two consecutive days without hitting any circuit limits.

Jio Financial made its debut on the stock exchanges on August 21, following its spin-off from the Reliance Industries conglomerate.

During Reliance Industries Annual General Meeting (AGM) held last month, Chairman Mukesh Ambani announced Jio Financials plans to enter the insurance segment. The company intends to offer a wide range of insurance products, including life, general and health insurance leveraging its vast customer base of 450 million mobile phone subscribers through its telecom arm Jio.

Currently shares of the company are trading at Rs 253.25, up by 3.24% from previous closing. As of now company has market capitalisation of around Rs 1,60,900 crore.

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.