- Sensex and other indices will no longer include shares of JFSL from July 31.
- The JFSL stock will be eliminated from all S&P BSE indices before September 1st.
- On August 18, JFSL shares fell for a fifth day, but they later rallied and finished the day in the green.
Sensex and other indices will no longer include shares of Jio Financial Services (JFSL) from July 31. The action was taken after JFSL shares fell by 5% for two additional days in a row, according to a Mint story.
The JFSL stock will be eliminated from all S&P BSE indices before the start of trading on September 1st, including the Sensex, Sensex 50, BSE 100, and BSE 500, among others.
Jio Financial shares
“The removal of the JFSL from all the S&P BSE Indices will be delayed by another three days since the stock has hit lower circuit limitations for two days in a row, namely August 24 and August 25. The JFSL will now be eliminated from all S&P BSE Indices before to the start of trade on Friday, September 1,” BSE Indices stated in a circular.
According to the Mint article, the circular further noted that the removal of JFSL from all S&P BSE Indices will be delayed if the stock does not hit the lower circuit limit on any of the following two days but does so on the third day.
JFSL shares were offered on stock exchanges on August 21 following a demerger from Reliance Industries (RIL). On August 18, JFSL shares fell for a fifth day, but they later rallied and finished the day in the green.
Since JFSL will no longer be included in any indices, index funds that acquired JFSL shares upon the demerger will now be compelled to sell those shares.
According to experts, as index funds rebalance their portfolios, over 120 million JFSL shares must be liquidated. JFSL stock was trading at Rs 218 as of 2:08 PM.
