Jio Financial Services opens 2% down on the last trading day on Nifty50

Shares of Jio Financial Services (JFS) opened over 2 percent lower on September 6, the last day for the stock in the Nifty 50 and other NSE Indices.

At 9:20am, the stock was quoting Rs 250.55 on the NSE, lower by 1.76 percent from previous close. Trading volumes at the time were over 10.7 million shares. The discovered price was Rs 261.85 for Jio Financial Services.

“In accordance with the index methodology, as JIOFIN has not hit the price band on two consecutive trading days on September 4 and 5 on the NSE, the Index Maintenance Sub-Committee (Equity) has decided to exclude it from various indices effective from September 7 (close of September 6),” the exchange said in a statement.

Even if Jio Financial Services hits the price band on September 6, the exclusion shall not be deferred, it added. Along with the Nifty 50, the stock will be excluded from Nifty 100, Nifty 200, Nifty 500, Nifty Energy, Nifty India Manufacturing and 13 other indices.

The adjustment is scheduled for final 30 minutes of trading on September 6.

As the stock is removed from NSE Indices, passive funds replicating them will have to adjust their portfolio. According to Nuvama Alternative Research calculations, passive selling is anticipated to reach nearly 105 million shares, worth $324 million.

While the BSE indices have removed Jio Financial Services, MSCI and FTSE continues to include the stock in their indices.

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