RIL share price settles at Rs 2,580 in special pre-open session, Jio Financial at Rs 261.85

Shares of Reliance Industries Ltd (RIL) settled at Rs 2,580 in the special pre-open session on Thursday. This is the discovered price (opening price) for RIL (ex-financials) at 10 am. For Reliance Strategic Investments Limited (to be renamed as Jio Financial Services or JFS), the share price is derived at Rs 261.85.

This was based on the difference between RIL's previous close of Rs 2,841.85 and the price discovered at Rs 2,580 in the pre-open session. For JFS, this constant price will stay. 
 
In the first 45 minutes of the one-hour trading session, investors were allowed to enter, modify or cancel the orders for Reliance Industries. The order matching period kicked off immediately after completion of order collection period for the next 10 minutes. Finally, the orders were matched at a single (equilibrium) price that is the open price. Given a delayed trading in RIL, computation of Nifty50 index level was based on 49 stocks during the pre-open session.

"This derived price of Jio Financial will be considered on a daily basis for Nifty index value computation until it gets listed on the bourses. Once Jio Financial shares get listed on exchanges, the stock will remain as the 51st stock in Nifty 50 index for three day. This will help volatility to settle in and let investors adjust their portfolios," Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities.

Watch: Reliance-JFSL Demerger: Jio Financial Services share price at Rs 261.85; RIL shares jump 1.5% today; check how BSE, NSE indices will treat JFS, when it is likely to be listed, and more

Active and passive fund managers would ideally maintain JFS price at Rs 261.80 per  share until it starts trading. JFS shares will be dropped from all the NSE and BSE indices at the last traded price, which is effective at the open of JFS listing date plus three  business days. If supposedly JFS lists on August 21, the stock will compulsorily be deleted on August 24, Nuvama Institutional Equities said in a note.

"Nifty passive trackers could sell around 90 million shares which is equivalent to approximately $290 million. Alongside Sensex Index trackers could sell 55 million shares, which is equivalent to appx $175 million. At the current free float - assuming weightages of less than 1 per cent in Nifty and around 1 per cent in Sensex," Nuvama said.

Meanwhile, JFS will be 51st constituent in Nifty and 31st constituent in Sensex. On a daily basis, it would be considered in weight calculations of Index but since it is not traded live, its market-cap and price will remain constant until the stock actually gets listed.

Reliance Strategic Investments Limited (to be renamed as Jio Financial Services or JFS),the demerged entity of Reliance Industries, reported a consolidated net profit after tax for the first quarter stood at Rs 331.92 crore on a total income of Rs 414.13 crore. Total income for the year-ended March 31 stood at Rs 44.84 crore and profit at Rs 31.25 crore.

On a standalone basis, net profit for the quarter came in at Rs 145.47 crore and total income at Rs 214.57 crore.

Also read: Reliance Industries, Infosys, HCL Technologies, HUL, ICICI Securities, others among stocks to watch on July 20, 2023

Also read: Top News on July 20: NSE’s special pre-open session for RIL, Q1 results of HUL, Infosys, Havells India; MRF, TCS, HCL Tech ex-dividend stocks, Nifty, Parliament Monsoon Session 2023, Vivo Y27 launch

Also read: Stocks that share market analysts recommended on July 20, 2023: IndusInd Bank, Havells India, GAIL, LTIMindtree

Also read: Reliance Industries, Infosys, HCL Technologies, HUL, ICICI Securities, others among stocks to watch on July 20, 2023

Also read: Top News on July 20: NSE’s special pre-open session for RIL, Q1 results of HUL, Infosys, Havells India; MRF, TCS, HCL Tech ex-dividend stocks, Nifty, Parliament Monsoon Session 2023, Vivo Y27 launch

Also read: Stocks that share market analysts recommended on July 20, 2023: IndusInd Bank, Havells India, GAIL, LTIMindtree