With normal trading in Jio Financial Services shares commencing nearly a month after being included in indices, benchmark Nifty50 got its 51st active stock, and Sensex its 31st stock.
Jio Financial shares listed on the stock exchanges on Monday at a slight premium to the derived price.
On July 20, stock exchanges had added Jio Financial to key indices, including the Sensex and Nifty50 following the demerger of the financial services business of Reliance Industries.
Through a special pre-open session in RIL stock, Jio Financial’s derived price was Rs 261.85, and it remained a part of the index at this constant price.
Since July 20, the value of Nifty 50 was calculated based on the 50 active stocks and the constant price of Jio Financial.
However, from today, the index value will be calculated based on the value of 51 active stocks in a normal trading session.
Even though Jio Financial is part of the Nifty50 and Sensex, the stock will trade in the “trade-for-trade” segment in the first 10 trading days. Therefore, it will trade in upper and lower circuit limits of 5%. This is unlike other index stocks, which do not have circuit breakers as they trade in the derivatives segment.
After listing at a slight premium, Jio Financial shares reversed the trend and were locked in the 5% lower circuit at Rs 248.90. This is due to likely selling by passive index funds.
With the listing of Jio Financial done, the stock will remain part of the Nifty50, Sensex and other indices only for a temporary period.
The stock will be removed from the indices on Thursday, provided it does not hit the price band for two consecutive days.
In case, during the first two days of the three days, the stock hits the price band on both days, then the exclusion date will be deferred by another three days.
The stock has hit a lower circuit today, and it will be seen if this repeats on Tuesday.
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