“Jio Financial Services Set for Removal from NSE Indices, Including Nifty 50, from September 7”
National Stock Exchange (NSE) announces the removal of Jio Financial Services from various indices, including Nifty 50, due to failure to meet price band criteria on consecutive trading days.
Jio Financial Services (JFS) is set to be delisted from the National Stock Exchange (NSE) Indices, including the prominent Nifty 50, starting from September 7, as announced by the NSE in a press release.
As per the index methodology, Jio Financial Services, identified by the ticker symbol JIOFIN, failed to meet the price band criteria for two consecutive trading days on September 4, 2023, and September 5, 2023, at NSE. Consequently, the Index Maintenance Sub-Committee (Equity) has decided to exclude JIOFIN from multiple indices, with the exclusion becoming effective from September 7, 2023, following the close of trading on September 6, 2023.
The NSE release further clarified that should Jio Financial Services manage to hit the price band on September 6, the exclusion would not be deferred any further. Alongside Nifty 50, the stock will also be excluded from Nifty 100, Nifty 200, Nifty 500, Nifty Energy, Nifty India Manufacturing, and 13 other indices.
It is worth noting that while the Bombay Stock Exchange (BSE) indices have already removed Jio Financial Services, global indices such as MSCI and FTSE continue to include the stock in their respective indices. On September 5, 2023, the stock closed at Rs 255.30 on the NSE, marking a 0.73 percent increase from the previous close.
With the stock’s removal from the NSE Indices, passive funds replicating these indices will be required to make necessary portfolio adjustments. According to calculations by Nuvama Alternative Research, the anticipated passive selling of JIOFIN shares is estimated to reach nearly 105 million shares, with a total value of $324 million.
Abhilash Pagaria of Nuvama Alternative & Quantitative Research commented on the situation, stating, “With the revised 20 percent price band, the exclusion process should proceed without significant hiccups.”
The adjustment is scheduled to take place during the final 30 minutes of trading on September 6, 2023. As Jio Financial Services faces exclusion from the NSE Indices, market participants will closely monitor the developments and potential impact on passive investment portfolios.
Sources By Agencies
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