Jio Financial Services' Exclusion From Nifty Indices Effective From September 7; Stock Sheds 3%

The exclusion of NBFC giant Jio Financial Services from various Nifty indices will come into effect from September 7, 2023. On Wednesday, Jio Financial stock shed more than 3% on the NSE with an intraday low of Rs 247 apiece.

In the notification, NSE said, "In accordance with the index methodology, as JIOFIN has not hit price band on two consecutive trading days on September 4, 2023 and September 5, 2023 at NSE, the Index Maintenance SubCommittee (Equity) of NSE Indices Ltd. has decided to exclude JIOFIN from various indices as listed hereunder effective from September 7, 2023 (close of September 6, 2023)."

In July month, NSE announced the inclusion of Jio Financial on account of the demerger of financial services business from Reliance Industries Limited (RELIANCE) in various indices effective from July 20, 2023 (close of July 19, 2023). After demerger, Jio Financial was listed on August 21, 2023, at the National Stock Exchange Ltd. (NSE).

However, NSE also said that it may be noted that if JIOFIN hits the price band on September 6, 2023, the exclusion shall not be deferred further.

Currently, Jio Financial shares have refrained from hitting price bands on the NSE. The stock is trading at Rs 248.25 apiece, down by 2.7% on the exchange. It touched an intraday high and low of Rs 251.90 and Rs 247 respectively.

Jio Financial's 20% upper and lower price circuits on NSE are Rs 306.05 and Rs 204.05 apiece. When a stock hits the upper circuit, it usually means that there are several buyers for the respective equity shares but no sellers. This is the opposite in the case of lower circuits.

Jio Financial stock is currently available on NSE indices such as Nifty 50, Nifty 100, Nifty 200, Nifty 500, Nifty50 Equal Weight, Nifty100 Equal Weight, Nifty500 Multicap 50:25:25, Nifty Commodities, Nifty Energy, Nifty India Manufacturing, Nifty Infrastructure, Nifty LargeMidcap 250, Nifty Low Volatility 50, Nifty Mobility, Nifty Oil & Gas, Nifty Total Market, Nifty100 ESG, Nifty100 Liquid 15, and Nifty100 Low Volatility 30.

Jio Financial Services listed on August 21 at Rs 265 apiece, up by 1.20% from its fixed price of Rs 261.85 apiece in the pre-market price discovery session which was held last month.

From September 1st, Jio Financial stock is offered on a rolling settlement basis on BSE, which is also the day when the stock was removed from all the S&P BSE Indices following its listing and spin-off from its parent, Reliance Industries.