Jio Financial Services share price again hits a 5% lower circuit

Jio Financial Services share price on Tuesday locked at a 5% lower circuit for the second straight session. The opening price of Jio Financial Services shares was ₹239.20, which was 5% less than their previous closing price of ₹251.75 on the BSE.

At 10:00 AM, JFS shares were down 5% at ₹239.20 apiece on the BSE, with a market cap of ₹1,51,970 crore.

On August 21, Jio Financial Services Limited (JFSL), the reorganized financial division of Reliance Industries, debuted on the stock market as Reliance Strategic Investments Limited. On Monday, JFSL shares were listed at ₹265 on the BSE and ₹262 on the NSE, which is lower than the discovered price of ₹261.85 per share. JFSL shares, however, quickly fell to a 5% lower circuit of ₹251.75 on the BSE following the listing. It also reached ₹248.90, the 5% lower price band, on the NSE.

JFSL shares are now listed on the exchange’s T group of securities, allowing for trading. The stock will be available for purchase in the “Trade-for-Trade” section for ten trading days. As a result, trading in JFSL shares will not be permitted during the day. Under T2T Group stock, investors are limited to buying and selling based solely on delivery.

After three days of listing, JFSL shares will be taken out of all indices per the exchanges. Shares of Jio Financial Services are weakening as a result of sales by passive funds that follow indexes like the Sensex and Nifty.

According to Abhilash Pagaria, an analyst at Nuvama Wealth Management, passive funds that track the Nifty might sell about 90 million shares for a total estimated value of $290 million, while passive Sensex trackers could sell about 55 million shares for a total estimated value of $175 million.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “The 6.1% stake that JFSL owns in RIL and the company’s projected future growth potential are the basis for its valuation. With its vast network of customers and merchants, JFSL can scale up its business significantly, which bodes well for its future growth prospects. However, institutional selling has a short-term negative impact on the share price. Institutional selling is dragging the price down because the stock is in the T segment.”

Following its listing, Jio Financial Services had a market capitalization of ₹1.58 lakh crore, making it the nation’s second-largest non-banking financial company (NBFC) after Bajaj Finance.