Jio Financial Services faces exclusion from NSE indices tomorrow
Jio Financial Services Ltd. (JFSL), the non-banking financial services arm of Reliance Industries, is set to be removed from Nifty50 and other NSE indices tomorrow. The National Stock Exchange has said that the adjustment would be done during the last 30 minutes of the trading session today i.e. between 3:00-3:30pm. JFSL was added temporarily to key indices to allow passive index funds to trade the shares they received due to the demerger. It has already been removed from Sensex.
JFSL's stock exchange debut and expansion plans
JFSL was listed on stock exchanges on August 21 after spinning off from parent company Reliance Industries. During the Annual General Meeting (AGM), Reliance Industries chairperson Mukesh Ambani announced plans for JFSL to enter the insurance segment, offering general, life, and health insurance products. The company aims to leverage the 450 million mobile phone subscribers from its telecom division, Jio, to sell these products and payment services.
Exclusion impact: Passive selling predictions
The exclusion of JFSL from Nifty50 and other indices is expected to result in the passive selling of roughly 105 million shares, amounting to $324 million, according to Nuvama Alternative and Quantitative Research. The exclusion process should proceed without significant hiccups with the tweaked 20% price band. Notably, Sensex has already expuled JFSL, while MSCI and FTSE still include the stock in their indices.
A look at JFSL's stock prices
Today, JFSL opened at Rs. 247 per stock on the NSE and touched a high of Rs. 254.30. At the time of writing, it was trading at Rs. 250.65, down 1.73%. Meanwhile, on the BSE, it opened at Rs. 246.90 per stock and touched a high of Rs. 254.25. It is now trading at Rs. 250.85 (down by 1.67%).
