Jio Financial at lower circuit for third day
MUMBAI : Sellers made a beeline for the Jio Financial Services Ltd (JFSL) counter, dragging down the stock to the lower circuit for a third straight day. A total of 42.89 lakh shares were traded on the National Stock Exchange while 3.79 lakh shares changed hands on the BSE. The stock plunged 5% to ₹224.65 on the NSE and to ₹227.25 on the BSE.
As the stock is on the trade-to-trade segment, whatever is traded is delivered. Analysts expect the downside pressure on the stock could continue until 190-200 a share level, which they feel is fair value. Even the price differential between the two exchanges cannot be exploited as the stock hits the 5% lower circuit almost immediately.
“I think buying will set in at ₹190-200 as that seems to be fair value as per market expectations, but investors are also buying at the lower circuit," said Rajesh Palviya, SVP, Axis Securities. Alok Churiwala, MD, Churiwala Securities, ruled out arbitrage with the share hitting the lower circuit on both the exchanges. Arbitrage involves the simultaneous purchase and sale of the same security traded in different market segments to benefit from tiny price differences.
The shares listed on the NSE at ₹262.05 and at Wednesday’s closing was down almost 15%. Over the three days from 21 August, 8.63 crore shares have been traded on NSE and 39.82 lakh shares on BSE. “There is no big hurry to buy the shares as most RIL shareholders have the shares amid passive trackers of Sensex and Nifty likely to sell around 145 million shares," said Abhilash Pagaria, head, Nuvama Alternative & Quantitative Research.
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