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Shares of recent debutant Jio Financial Services (JFS) will be in focus on Monday after BSE in a circular said it increased the price band for the stock to 20 per cent from 5 per cent earlier. With this revision in circuit limit for JFS, it is expected that the demerged financial services arm of Reliance Industries would eventually be excluded from NSE indices including Nifty this week. The stock was removed from Sensex and other BSE indices last week.
For a spun off entity to be excluded from NSE indices, it must have two consecutive days without any circuit limits or price band, upper or lower. Expect no communication from the exchange until then, the brokerage said in a note.
“With that sturdy 20 per cent filter, chances of JFS hitting upper/lower circuits are about as rare as spotting a comet. So, there is a very good chance Jio makes its exit from Nifty indices in this week. If JFS doesn’t reach its limits (20 per cent) on Monday (September 4) and Tuesday (September 5), consider Wednesday (September 6) its official exclusion day (when Nifty passive trackers will sell in last 30 minutes of trade),” Abhilash Pagaria – Nuvama Institutional Equities
As per Nuvama Alternative & Quantitative Research calculation- Jio Financial’s departure could lead to the sale of approximately 105 million shares by Nifty passive trackers.
Nuvama said while NSE’s price band circular for JFS is awaited, it should also have same 20 per cent filter as BSE.
JFS got listed at Rs 265 apiece on August 21, a 1.18 per cent premium over its discovered price of Rs 261.85 apiece on July 20. The stock was admitted to dealings in the T2T group securities on BSE.
At RIL’s 46th AGM, Chairman and Managing Director Mukesh Ambani called Jio Financial as the fourth growth engine. He said JFS products will not just compete with current industry benchmarks but also explore path-breaking features such as blockchain-based platforms and CBDC.
“They will adhere to the highest standards of security, regulatory norms and ensure protection of customer transaction data at all times. JFS will enter the insurance segment to offer simple, yet smart, Life, General, and Health insurance products through a seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way,” Ambani said.
Meanwhile, RailTel Corporation of India (10 per cent), India Pesticides (10 per cent), Dolphin Offshore Enterprises (10 per cent) and RattanIndia Power (5 per cent) are among other stocks, whose price band have been revised.
Also read: Stocks to watch on September 4, 2023: Reliance Industries (RIL), NTPC, HCL Technologies, L&T, PVR INOX, others
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