Jio Financial Services to be excluded from Nifty50, other indices from 7 September

Jio Financial Services Ltd, the demerged non-banking financial services unit of Mukesh Ambani-led Reliance group, will be dropped from Nifty50, other indices, on September 7, the stock exchange NSE said on Tuesday.

NSE Indices Limited vide its press release dated July 17, 2023 had announced inclusion of Jio Financial Services Limited (JIOFIN or spun-off entity) on account of demerger of financial services business from Reliance Industries Limited (RELIANCE) in various indices effective from July 20, 2023 (close of July 19, 2023). After demerger, JIOFIN was listed on August 21, 2023 at the National Stock Exchange Ltd. (NSE).

In accordance with the index methodology, as JIOFIN has not hit price band on two consecutive trading days on September 4, 2023 and September 5, 2023 at NSE, the Index Maintenance SubCommittee (Equity) of NSE Indices Ltd. has decided to exclude JIOFIN from various indices as listed here under effective from September 7, 2023 (close of September 6, 2023). It may be noted that if JIOFIN hits the price band on September 6, 2023, the exclusion shall not be deferred further.

Sr. No.     Index Name

1               Nifty 50

2               Nifty 100

3                Nifty 200

4                 Nifty 500

5                 Nifty50 Equal Weight

6                  Nifty100 Equal Weight

7                   Nifty500 Multicap 50:25:25

8                    Nifty Commodities

9                    Nifty Energy

10                   Nifty India Manufacturing

11                   Nifty Infrastructure

12                   Nifty LargeMidcap 250

13                    Nifty Low Volatility 50

14                    Nifty Mobility

15                    Nifty Oil & Gas

16                    Nifty Total Market

17                     Nifty100 ESG

18                    Nifty100 Liquid 15

19                    Nifty100 Low Volatility 30

Abhilash Pagaria of Nuvama Alternative & Quantitative Research commented that finally, offering a sigh of relief to all curious participants, Jio will indeed now be excluded from Nifty Indices. This development aligns seamlessly with Nuvama Alternative & Quantitative Research's expectations. Some time ago, Nifty Indices had made the announcement of JIO's exclusion from various indices, and the adjustment is scheduled for September 06 in the final 30 minutes of trading.

As per Nuvama Alternative Research's calculations, passive selling is anticipated to reach nearly 105 million shares, amounting to USD 324 million. With the revised 20% price band, the exclusion process should proceed without significant hiccups. It's worth noting that Sensex has already removed Jio, while MSCI and FTSE continue to include the stock in their indices.

Shares of Jio Financial Services Ltd (JFSL) got listed on the stock exchanges on August 21 due to its spin-off from parent Reliance Industries.

During the Annual General Meeting (AGM) , Reliance Industries Chairman Mukesh Ambani announced that Jio Financial Services will enter the insurance segment to offer life, general and health insurance products.

It will leverage the 450 million mobile phone subscribers' base of the telecom arm, Jio, to sell its products, including payment services, he had stated.