Jio Financial Services: Stock's exclusion from indices deferred, again; here are the details

Jio Financial Services stock: Jio Financial Services' exclusion from stock indices has been deferred once again. Now, the stock is slated to be dropped from all the indices on September 1, 2023. The stock of the financial arm of the oil-to-telecom conglomerate Reliance Industries (RIL), which was recently demerged from the parent company, was first scheduled to be removed from the indices on August 24, which was later postponed to August 29. The stock will remain in the T-to-T segment till September 1.

Jio Financial Services made a flat debut on the stock exchanges (BSE, NSE) on Monday (August 21). It listed at Rs 262 on the NSE and Rs 265 on the BSE against its discovered price of Rs 261.85. Soon after listing, the stock hit its lower circuit. The domestic stock exchanges, BSE and NSE, held a one-hour special 'pre-open' session on July 20 for RIL to discover the price of its demerged entity.

Jio Financial Services: Reason behind postponement of stock's exclusion from indices 

According to stock exchanges' rules, if a stock has hit a lower circuit for two straight sessions out of three, the stock cannot be excluded from the indices. Since its listing on August 21, the stock has hit the lower circuit for four straight sessions. In four days, the scrip has slipped around 18.5 per cent and its market capitalisation has decreased by Rs 31,000 crore.

Today also, the stock hit a lower circuit in the opening deals; however, it recovered later. The stock saw a block deal of 6.4 crore shares. In the last four days, the stock witnessed a maximum volume of 7.47 crore shares on August 21. In four days, the stock has witnessed volumes of 11.4 crore on the NSE. Today, the stock volume was Rs 26 crore.

The free fall in the stock is attributed to selling by passive funds. RIL's AGM is scheduled for August 28.