Jio Financial Services shares fell over 3% in early trade on Wednesday, as the stock is set to be delisted from the NSE indices on September 7. Shares of Jio Financial Services fell as much as 3.23% to ₹246.85 each on the BSE.
Jio Financial Services Ltd (JFSL), the demerged non-banking financial services unit of Mukesh Ambani-led Reliance Industries, will be dropped from the Nifty 50 and other NSE indices on September 7, the stock exchange said on Tuesday.
JFSL shares will be removed from 19 NSE indices, including Nifty 50, Nifty 100, Nifty 200, Nifty 500, Nifty Energy, Nifty Commodities and Nifty Oil & Gas.
BSE indices had removed Jio Financial Services shares last week, while MSCI and FTSE continue to include the stock in their indices.
With the removal of JFSL shares from the NSE indices, passive funds tracking these indices will have to adjust their portfolios. The adjustment is expected to take place in the last 30 minutes of trading on 06 September.
According to calculations by Nuvama Alternative Research, passive selling is expected to be close to 105 million shares, valued at $324 million.
With the revised 20% price band, the exclusion process should proceed without significant hiccups, said Abhilash Pagaria of Nuvama Alternative & Quantitative Research.
Earlier, the exchanges had raised the price band for Jio Financial shares from 5% to 20% with effect from Monday, 4 September.
At 9.55 am, Jio Financial Services shares were trading 2.63% lower at ₹248.40 each on the BSE.
