Shares of Jio Financial Services (JFS), the demerged financial services business of Mukesh Ambani-led Reliance Industries Ltd have been excluded from Sensex and other BSE indices prior to the open of trading on Friday (September 1). In the final 30 minutes of trading on Thursday, the stock witnessed a total volume of around 6.4 crore shares, largely attributed to Sensex passive sellers
Earlier, the stock was slated to be removed from the indices on August 24. Later, it was postponed to August 29. The exclusion was postponed as it continued to hit the lower circuit. JFSL was listed on the bourses on August 21 following the demerger from RIL
Jio Financial Services is likely to see a smooth Nifty exclusion by next week, according to Abhilash Pagaria of Nuvama Alternative & Quantitative Research. JFS would not be removed until two consecutive days pass without the spun-off entity hitting the price band (upper or lower). For instance, if JFS does not hit its price band on Friday and Monday (September 4), its Nifty exclusion would take place on September 5, the brokerage said
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"The [JFS] stock exits Trade to Trade (T to T Segment) on September 4, likely facilitating the smooth exclusion next week as the circuit limit will revise (can move from 5% to 10%/20%). The outflow will amount to approximately 105 million shares," Pagaria of Nuvama said in a note
Jio Financial shares were trading at Rs 240.50, up nearly 3% today on NSE. JFS got listed at Rs 265 apiece on August 21, a 1.18% premium over its discovered price of Rs 261.85 apiece on July 20. The stock is being admitted to dealings in the 'T' group securities on BSE. The stock will soon be out of the T to T segment, facilitating easy exit, according to Abhilash Pagaria
Meanwhile, Global Indices MSCI & FTSE Indices maintained Jio Financial Services (JFS) in the Index, with no impact on inflow or outflow. Since JFSL is a demerged company from RIL, which is a part of benchmark indices, it was made a part of the Sensex and Nifty to limit volatility. However, it is traded in the trade-for-trade segment where only delivery transactions are allowed. After its listing, the company saw relentless selling for four consecutive days
At RIL's 46th AGM, Chairman and Managing Director (MD) Mukesh Ambani called Jio Financial as the fourth growth engine for the conglomerate. He said JFS products will not just compete with current industry benchmarks but also explore path-breaking features such as blockchain-based platforms and CBDC
"They will adhere to the highest standards of security, regulatory norms and ensure protection of customer transaction data at all times. JFS will enter the insurance segment to offer simple, yet smart, Life, General, and Health insurance products through a seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way," Mukesh Ambani said at RIL AGM
Jio Financial Services (JFS) plans to consolidate its payments infrastructure with offerings for both consumers and merchants. Besides, the company is looking to enter the insurance segment to offer life, general and health insurance products. The company has presence in AMC business via partnered with BlackRock