Jio Financial Services hits circuit breaker for third day; MSCI addition in focus

Indian exchanges on Tuesday delayed removal of the stock from benchmark indexes till Aug. 28, as the company’s shares hit the lower circuit for two consecutive days.

JFS, which was automatically included in the benchmark Nifty 50 and Sensex indexes due to parent company Reliance Industries’ presence, was supposed to be removed at the end of Wednesday.

Analysts had flagged worries over the stock’s sharp decline and that index-linked funds could see distorted weightages for longer if fund managers cannot sell their holdings as soon as possible.

JFS, which has said it intends to be a “full-service financial services player,” was spun out of billionaire Mukesh Ambani-led conglomerate last month.

As of Wednesday, Jio Financial’s valuation has fallen to about $17.24 billion, from around $20 billion during a “price discovery” session in mid-July.