JFSL to exit S&P BSE indices including Sensex
Reliance Industries Ltd. However, as the stock was locked in lower circuits for several days, the exclusion was postponed. Over the past three days, the stock has consistently gained, reaching upper circuits and avoiding lower circuits.
This signals its impending removal from the indices, including the BSE-30 indices. On Thursday, JFSL started trading at ₹240.9 on the BSE, hitting an upper circuit and reaching an intraday high of ₹244.3. The stock ended the day at ₹233.65, up by 0.41%.
JFSL’s market capitalization at ₹1.48 trillion, makes it the third most-valued non-banking financial firm after Bajaj Finance and Bajaj Finserv. A decision regarding JFSL’s removal from the Nifty indices is also expected in the coming week with index funds selling another 110 million shares, said Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research. The index funds, which received JFSL shares following the demerger from RIL, may be compelled to sell JFSL shares following its removal from the index.
The selling pressure could lead to volatility in the stock prices but is likely to get support in the ₹205-210 range. The downside support is thereby available, said Pagaria. The stock recently has seen good buying interest at these levels and even some large institutions are likely to have bought the stock.
The stock had hit 52-week lows of ₹205.15 on the BSE and ₹202.80 on the NSE on 25 August. These lows are also close to the book value and experts already had been expecting good buying interest coming at close to these levels. The stock is also likely to be out of the T2T (trade-to-trade) segment by next week, said experts.
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