jio financial shares: Jio Financial shares hit 5% upper circuit on likely block deals; stock may exit Sensex tomorrow

Jio Financial Services stock is likely to get excluded from the S&P BSE Sensex from tomorrow unless it hits the 5% lower circuit according to estimates from Nuvama.

The stock, which hit yet another 5% upper circuit on multiple block deals in the opening trade, had ended with 5% gains in previous two trading sessions.

The upper circuit is unlikely to have any impact on its exclusion from Sensex, the Nuvama report said.

The day’s high for Jio Financial shares stood at Rs 242.80 on the NSE and the stock witnessed strong volume action with 1.24 crore shares trading on the NSE after the block deal news was reported by ETNow.

As per the Nuvama report, JIO’s 1.1% weight in Sensex 30 Index means passive selling may involve around 60 million shares, equivalent to roughly $180 million. Any decision on the deferment of exclusion will likely be announced by the BSE during market hours.

As far as the Nifty indices are concerned, Nuvama does not see Jio getting deleted until “two consecutive days of the spun-off entity avoiding the price band (upper or lower)”.

Explaining it further, the brokerage said that no price band hit – upper or lower on Thursday and Friday will lead to exclusion on Monday September 4. “The stock will come out of Trade to Trade (T to T Segment) from September 4, likely smoothing the exclusion next week,” the report said.Nuvama opined that Nifty indices will issue a press statement announcing the exclusion of the spun-off entity only after two consecutive days of it not hitting the price band and during this period, there will be no communication from their end.

Nuvama informed about S&P communication on the exclusion of Jio Financial earlier today. The cumulative selling of both the indices is around 150 million to 160 million shares, the report said. The Jio Financial exclusion from domestic indices was postponed by three days from August 28 after the counter hit lower circuit limit for 2 consecutive sessions on August 24 and August 25, 2023. The removal of JFSL from all the S&P BSE indices will be postponed by another 3 days, the report said.

Global Indices – MSCI & FTSE Indices maintain Jio Financial in the index, with no inflow or outflow impact.

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