Shares of Jio Financial Services ltd (JFSL), which was spun off from Reliance Industries Ltd (RIL), hit the 5 per cent lower circuit limit for the second consecutive day on Tuesday. The stock settled at Rs 239.2 apiece, down 4.99 per cent on the BSE as against the previous close of Rs 251.75 apiece. On the NSE, the scrip closed at Rs 236.45, down 5 per cent as compared to Monday’s close of Rs 248.9. JFSL stock got listed at Rs 265 per share on the BSE and Rs 262 apiece on the NSE on Monday. "When a stock is expected to move to high volatility, it is put under trade-to-trade. The volatility in JFSL was expected since institutional selling was on the cards and interested buying too was expected. The volatility seen in the stock after listing justifies the decision to move the stock to the T segment,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The T Group represents securities which are settled on a trade-to-trade basis as a surveillance measure. Investors who are optimistic about the stock can buy from the market for delivery without any restrictions, he said. The BSE in a circular said that since the JFSL stock has hit lower circuit limit for two consecutive days - August 21 and August 22, 2023, the Index Committee has determined to postpone the removal of JFSL from all the S&P BSE Indices by another three days. Earlier, the scrip was scheduled to be removed from BSE indices on August 24. “JFSL will now be removed from all the S&P BSE Indices effective prior to the open of trading on Tuesday, August 29, 2023. Should JFSL continue to hit lower circuit on the next 2 days, the removal date will be deferred by another 3 days,” the BSE said in the circular. Additionally, if JFSL does not hit the lower circuit limit on either of the next two days, but hits the lower circuit limit on the third day, the removal of JFSL from all the S&P BSE Indices will be deferred by another three days, the circular said. Nuvama Alternative & Quantitative Research, in a note, said as per Nifty Indices methodology, the exclusion's postponement to August 28, 2023 from Nifty indices is evident. “The combined outflow is projected to involve approximately 145 to 150 million shares, encompassing both Nifty and Sensex,” it said. Meanwhile, the Life Insurance Corporation of India (LIC) on Tuesday informed exchanges that it has acquired 6.66 per cent shareholding in JFSL through demerger action by RIL. It said that the cost of acquisition or the price at which the shares are acquired is 4.68 per cent of the pre-demerged cost of RIL.
