![Jio Financial Services Turns Green After Hitting Lower Circuit On 5th Day; Details](https://cdn.filka.info/news/64/4f/50/644f50b4d458d8992d8149dbc410bca3-b.jpg)
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After hitting a lower circuit for straight five sessions since listing, shares of Jio Financial Services Ltd found some buyers on Friday and were trading marginally higher from its previous close.
The stock opened 5 per cent lower at Rs. 202.80, but turned green after a large block deal. Around 64.6 million shares changed hands in four bunched trades. At 10.10 am, the stock was trading at Rs 224 on BSE, up 1 per cent from its previous close.
On Friday, shares of Jio Financial Services hit lows at Rs 205.15 post hitting the lower circuit. However, the stock rebounded about 10 per cent to Rs 224.80 during the session, with a total market capitalization of more than Rs 1.4 lakh crore. However, the stock rose more than 4 per cent from its previous close at Rs 215.90 on Thursday.
On August 24, around 17.4 million Jio shares changed hands on exchanges in multiple bunched trades, Bloomberg reported. Meanwhile, the buyers and sellers for both deals were not known.
Shares of Jio Financial Services were listed on the bourses at Rs 265 apiece on Monday, August 21. The stock has corrected about 23 per cent in five days, before finding some buyers. Investors are now keenly awaiting the annual general meeting of Reliance Industries, scheduled on Monday, August 28.
In anticipation of Jio’s planned removal from the BSE Sensex and Nifty indices, exchange-traded and index funds are projected to divest Jio shares. Nuvama Wealth’s recent note suggests that passive index trackers might sell up to 145 million shares of Jio Financial.
Jio Financial will continue to be a constituent of MSCI and FTSE indices. There won’t be any fresh buying or selling, Nuvama’s Abhilash Pagaria noted.
Earlier, stock exchanges had postponed the exclusion of Jio Financial Services from key Sensex and Nifty indices to August 28 from August 23.
The stock of Jio Financial has been listed in the T-group segment of the bourses for the initial ten days of the listing. This means that intraday trading won’t be possible in the stock and there will be a circuit limit of only 5 per cent for both buyers and sellers. This will restrict any major moves in the stock.
JFS’ listing was somewhat subdued compared to market expectations of more than Rs 300. Short-term selling pressure would continue looking at seller mood, which has increased multifolds in the last 3 days,” said Prashanth Tapse, Research Analyst- Senior VP Research at Mehta Equities.
“Only after the RIL AGM on August 28, we can expect some development in the JFS’ business plan. We stand neutral on the counter and wait for the AGM development, which can give a clear picture on the future outlook,” Tapse said.
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