Jio Financial Services, a demerged subsidiary of Reliance Industries Ltd (RIL), is expected to be removed from all National Stock Exchange (NSE) indices, including the Nifty50, effective Thursday, September 7, 2023. The NSE announced this adjustment will occur during the last half-hour of trading on Wednesday, September 6. According to an analysis by Nuvama Alternative & Quantitative Research, this change may trigger the sale of approximately 105 million shares worth around $325 million (about ₹2,700 crore) by passive funds.
Earlier this week on Tuesday, September 5, at RIL's 46th annual general meeting (AGM), Chairman and Managing Director Mukesh Ambani referred to Jio Financial as the fourth growth engine. He stated that the company's products would not only compete with current industry benchmarks but also explore innovative features like blockchain-based platforms and Central Bank Digital Currency (CBDC).
"In accordance with the index methodology, as Jio Financial has not hit price band on two consecutive trading days on September 4 and September 5 at NSE, the index maintenance sub-committee (Equity) of NSE indices has decided to exclude it from various indices effective from September 7, 2023," said NSE in a post-market hours release.
Jio Financial Services was included in NSE indices following its demerger from RIL effective from July 20, 2023. The stock was listed at Rs 265 ($1 = Rs 82.7) apiece on August 21, a 1.18 percent premium over its discovered price of Rs 261.85 apiece on July 20. However, it was removed from Sensex and other Bombay Stock Exchange (BSE) indices last week.
The listed indices affected include Nifty 50 , Nifty 100, Nifty 200, Nifty 500 among others. If Jio Financial hits the price band on Wednesday, September 6, the exclusion would not be deferred further, NSE added. As of Tuesday's close, the stock settled 0.73 percent higher at Rs 255.30 on NSE.
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