Shares of Jio Financial Services (JFS), a subsidiary of Reliance Industries in India, experienced a consecutive 5% decline for the second day in a row on Tuesday. This drop is attributed to passive funds continuing to sell off as the stock prepares to exit benchmark indexes.
JFS shares hit their lower circuit limit, reaching 236.45 rupees per share. On their trading debut the previous day, they had opened at 262 rupees but fell by 5%.
Mukesh Ambani’s Reliance Industries had recently spun off JFS, setting the stock price at 261.85 rupees during a special discovery session.
JFS’s inclusion in the benchmark Nifty 50 and Sensex resulted from its demerger from Reliance; however, according to exchange rules, it will be removed from the benchmarks at the conclusion of the third trading day following the demerger.
Market analysts suggest that this impending removal from the benchmark indexes has prompted index funds to divest their JFS shares, causing the decrease in share price.
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