Shares of Jio Financial Services Limited (JFSL), the financial unit spun off from Reliance Industries Limited (RIL), experienced a 5% decline, prompting the activation of the lower circuit for the second consecutive trading session. Right after the commencement of the market session, JFSL shares triggered the 5% lower circuit on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). By 9:28 am, the company’s shares had slipped 5% on the NSE, settling at Rs 236.45 per share, while they dipped to Rs 239.20 on the BSE.
Experts in the market have advised investors to exercise caution while dealing with JFSL shares. In the wake of the company’s debut on the stock market, Manish Chowdhury, the Head of Research at StoxBox, highlighted the anticipated volatility in the share performance and the potential for significant fluctuations.
Following the launch of Jio Financial Services at around its discovered pricing of Rs. 261.85, shares have faced a decline, hitting the 5% lower circuit, Chowdhury said. Given the company’s trading status in the Trade-To-Trade (T2T) segment during the initial 10 days, we foresee the likelihood of notable volatility and expect substantial movements in either direction.”
He said, “Investors are encouraged to view the company through the lens of a modern business and await additional clarity regarding their strategic direction and primary areas of focus.”
Due to its separation from Reliance, JFSL has been included in both the Nifty50 and Sensex indices. However, as per exchange regulations, it will be removed from these benchmark indices after the completion of the third trading day.
The observed market situation has led analysts to infer that existing investors and shareholders might be divesting their holdings, contributing to the observed decline in the stock price.