Jio Financial shares in focus as exclusion from Sensex, Nifty, other stock indices deferred by 3 days

Shares of Jio Financial Services Ltd (JFS) will be in focus on Wednesday as the index committee of Asia Index Private Limited decided to postpone the exclusion of JFS from all the S&P BSE indices by another three days. JFS was supposed to be removed from stock indices from August 24. The move came after Jio Financial shares hit their lower circuit limits on the first two days of the three-day period.

On Tuesday, Jio Financial shares got locked at 5 per cent lower circuit limit of Rs 239.20 on BSE. They were down 5 per cent over their discovered price of Rs 261.85 in the previous session.

Had not the stock hit circuits for two consecutive days, the spun-off entity would have been removed after the third trading day of such observation. At exclusion, Nifty index passive trackers could sell around 9 crore shares, which is equivalent to approximately $290 million. Alongside Sensex index trackers could sell 5.5 crore shares, which is equivalent to $175 million, Nuvama Institutional Equities said this week.

Watch: Jio Financial shares tank 15% in 3 days; hit lower circuit for 3 days straight; what's dragging the stock and what should investors, JFS shareholders do?

Asia Index Private Limited said it is aware of the recent lower circuit hitting for JFS.

"Since the stock has hit lower circuit limit for two consecutive days i.e., Monday, August 21, 2023, and Tuesday, August 22, 2023, JFSL will now be removed from all the S&P BSE Indices effective prior to the open of trading on Tuesday, August 29, 2023," the index committee said.

"Should JFSL continue to hit lower circuit on the next 2 days, the removal date will be deferred by another 3 days. Additionally, should JFSL not hit the lower circuit limit on either of the next 2 days, but hits the lower circuit limit on the 3rd day, the removal of JFSL from all the S&P BSE Indices will be deferred by another 3 days. Any postponement of a removal will be communicated as soon as possible; any changes to this approach would be announced via the standard channels," Asia Index Private Limited said.

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