The removal of JFS from the key market indices was initially scheduled for August 24, but it has been postponed twice by the index committees of BSE and NSE due to the continuous lower circuit hits.
Why are Jio financial services falling
The latest announcement is that JFS will be removed from all the S&P BSE indices effective before the opening of trading on September 1, and from all the NSE indices effective before the opening of trading on August 29.
However, these dates are subject to change depending on whether JFS continues to hit the lower circuit limit or not. If JFS hits the lower circuit limit on any of the next three trading days, the removal date will be deferred by another three days. Any postponement of removal will be communicated as soon as possible by the index committees.
Jio Financial Services (JFS) is the demerged financial arm of Reliance Industries Limited (RIL), which started trading on the stock exchanges on August 21, 2023. JFS was automatically included in the benchmark Nifty 50 and Sensex indexes due to the presence of RIL. However,
JFS shares have been hitting the lower circuit limit of 5% for several consecutive trading sessions, indicating a lack of buyers and a high selling pressure. This has been attributed to the index funds, which track the indexes, selling their JFS holdings to adjust their portfolios before the stock is removed from the indexes.
