Jio Financial Services share price falls over 3% ahead of exclusion from NSE indices; $324 mn passive selling expected

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₹246.85 apiece on the BSE. Jio Financial Services Ltd (JFSL), the demerged non-banking financial services unit of Mukesh Ambani-led Reliance Industries, will be dropped from Nifty 50 and other NSE indices, on September 7, the stock exchange NSE said on Tuesday. JFSL shares will be dropped from 19 NSE indices, including Nifty 50, Nifty 100, Nifty 200, Nifty 500, Nifty Energy, Nifty Commodities and Nifty Oil & Gas.

Read here: Jio Financial Services to be excluded from Nifty50, other indices from 7 September BSE indices had last week removed Jio Financial Services shares, while MSCI and FTSE continue to include the stock in their indices. With the removal of JFSL shares from NSE Indices, passive funds tracking those indices will have to adjust their portfolios. The adjustment is scheduled for September 06 in the final 30 minutes of trading.

As per Nuvama Alternative Research's calculations, passive selling is anticipated to reach nearly 105 million shares, amounting to $324 million. With the revised 20% price band, the exclusion process should proceed without significant hiccups, said Abhilash Pagaria of Nuvama Alternative & Quantitative Research. Earlier, the stock exchanges had increased the price band for the Jio Financial shares to 20% from 5% effective from Monday, September 4.