Rs 23,700 crore-dent in 3 days! Jio Financial stock hits 5% lower circuit for 3rd day
Jio Financial Services were locked in the lower circuit of 5% for the third straight session on Wednesday, trading at Rs 224.65, amid continued selling by institutional investors.
In three days, the market value of the subsidiary of Reliance Industries has eroded by more than Rs 23,700 crore.
The traded volumes of 2.3 million shares on NSE were lower than the 7.3 million shares that changed hands in the previous session.
On Tuesday, index provider Asia Index Pvt Ltd deferred the decision to remove the stock from all key indices of BSE, including the Sensex by three days, as the stock hit the lower circuit for two consecutive days.
Jio Financial is currently part of key indices of the BSE and NSE, including the Sensex and Nifty50.
Jio Financial was added to key indices on July 20 for a temporary period, to give passive and active funds holding RIL stock, an opportunity to trade in the demerged entity.
It was added at a constant price of Rs 261.8, which was derived through a special pre-open session conducted by the exchanges on RIL stock.
Jio Financial will exit all the S&P BSE indices on August 29, provided it does not hit a lower circuit in the 3-day period.
If the stock hits a lower circuit again on Thursday, then the removal date will be deferred again by another three days.
While selling continues in the domestic market, the inclusion of the stock in the global indices such as FTSE and MSCI provided no support.
This is because funds owning RIL stock already have Jio Financial shares, so, there will be no fresh adjustments in their portfolio.
Shares of parent Reliance Industries were trading at Rs 2,526.90 on the NSE, up 0.3% from the previous close.
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