JFSL shares hit 5% lower circuit on day-2: Here's why
What's the story
The shares of Jio Financial Services Limited (JFSL) have experienced a 5% drop for the second consecutive trading session today.
The stocks have hit the lower circuit on both the National Stock Exchange (Rs. 236.45 apiece) as well as the Bombay Stock Exchange (down to Rs. 239.20).
This decline is believed to be due to existing investors and shareholders divesting their shares, causing the stock price to fall.
Reasons
Nifty50, Sensex inclusion has impacted JFSL divestment
JFSL's temporary inclusion in the Nifty50 and Sensex, resulting from its separation from Reliance Industries Limited, has played a role in the observed divestment by existing investors and shareholders.
The company will be removed from these benchmarks after the third trading day, in accordance with the exchange regulations.
Investors are advised to exercise caution and wait for further information on the company's strategy and focus areas before making any decisions.
Details
Analysts advise caution with JFSL Trading
Market analysts are urging caution when trading JFSL shares.
Manish Chowdhury, head of research at StoxBox, recommends treating JFSL as a new-age business and waiting for more clarity on its strategy and key focus areas.
He also warns of potential volatility and heightened fluctuations in the stock price.