Jio Financial Services (JFSL) will be removed from all the S&P BSE indices, prior to market opening on Friday, the exchange said in a release. Since the stock did not hit lower circuits in the last two sessions, the exchange is going ahead with the removal of the stock from the indices. Ever since the stock got listed, the stock was reeling under the selling pressure from passive funds, who had to adjust their portfolio prior to the removal of JFSL from benchmarks Nifty 50 and Sensex.
As per the new index methodology, JFSL was temporarily added to key indices so as to give passive index funds an opportunity to trade in the shares received on account of a demerger. The temporary addition was also to stabilize the volatility in Reliance shares as a consequence of the demerger. JFSL was temporarily included in the indices on July 21 by conducting a special pre-open session in RIL to derive the price of the former.
The NBFC stock remained part of the index at a constant price of Rs 261.85 till it was officially listed on August 21. After being locked in the 5% upper circuit during the day, shares of Jio Financial came off the circuit level and closed nearly 1% higher on the NSE at Rs 233.50. Parent RIL’s shares closed 0.5% lower at Rs 2,407.
