Jio Financial Out Of Lower Circuit: What Do Analysts Say Will Happen Next?

Jio Financial shares were out of the lower circuit on Friday after four straight sessions of hitting the circuit level, trading nearly 5% higher.

What Happened: The stock initially opened 5% lower at the start of the session but rebounded into positive territory following a significant block deal. In total, around 64.6 million shares were exchanged in four bundled trades.

On August 24, it was reported that around 17.4 million Jio shares changed hands on various exchanges through multiple bundled trades. However, the identities of the buyers and sellers involved in both deals remain undisclosed.

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A Shaky Start: Over the past three sessions, the stock had witnessed a decline of around 13.2%. Market analysts suggest that this decline may be more influenced by technical factors rather than fundamental ones.

Anticipating Jio’s removal from the Sensex and Nifty indices, exchange-traded and index funds are expected to divest Jio shares. Nuvama Wealth’s recent note indicates that passive index trackers may sell up to 145 million shares of Jio Financial.

Its exclusion from key Sensex and Nifty indices has been postponed to August 28 from August 23 by stock exchanges. No fresh buying or selling actions related to this change are expected, according to analysts at Nuvama Wealth.

Price Action: Jio Financial’s share price was trading 4.94% higher at ₹224.00 in early trade on Friday.

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