Jio Financial Services removed from BSE indices: What happens next
Jio Financial Services Limited (JFSL) has been removed from the BSE indices, including Sensex. The stock's exclusion from the indices was initially scheduled for August 23 but the plan was delayed by exchanges as it continued to hit the lower circuit for several consecutive sessions. This week, JFSL marked three consecutive sessions of gains due to buy-ins from large investors and promoters. It closed at an upper circuit of 5% and reached Rs. 242.5 per stock on BSE yesterday.
Sensex removal triggers $180 million passive selling
According to Nuvama Alternative & Quantitative Research, the removal of JFSL from Sensex's weight will lead to the passive selling of roughly 60 million shares. They would be worth around $180 million. On the other hand, indices such as MSCI and FTSE will retain JFSL, and hence there will not be any impact on inflow or outflow.
Nifty awaits price stability for JFSL removal
Nuvama has claimed that JFSL will not be removed from Nifty indices until it avoids price limits for two consecutive days. If there are no price limit breaches today, the exclusion from Nifty will take place on September 4. This would allow the stock to exit the Trade to Trade (T2T) segment and facilitate a smoother exclusion next week.
A look at JFSL's stock prices
Today, JFSL opened at Rs. 235 per share on the NSE and reached a high of Rs. 243.80. At the time of writing, it was trading at Rs. 240.9, up 3.1% compared to yesterday. Meanwhile, on the BSE, it opened at Rs. 236 per stock and touched a high of Rs. 243.40. It is now trading at Rs. 240.8 (up by 3%).
