Shares of Jio Financial Services were rising despite the stock being set to be removed from national indexes.

What Happened: Jio Financial Services is set to exit the Nifty 50 and other National Stock Exchange indexes from September 7, according to an announcement by NSE Indices.

The decision comes after Jio Financial did not hit circuit levels for two consecutive trading sessions. The stock was excluded from the Sensex and other Bombay Stock Exchange indices just a week ago.

Exchanges recently raised the circuit limit for the stock to 20% from 5%, which has led to a massive spike in the stock price, going above its listing price of ₹262 per share at its debut on the stock market on August 21.

The Journey So Far: In the initial days post-listing, the stock faced selling pressure from passive funds, which had to adjust their portfolios ahead of Jio Financial’s removal from the Nifty 50 and Sensex indices.

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The inclusion of Jio Financial in these major indices occurred temporarily on July 21 following the demerger of RIL’s financial services business through a special pre-open session in RIL to determine Jio Financial’s price.

Nuvama Alternative Research estimates that the exclusion of Jio Financial from the Nifty 50 could result in the passive selling of nearly 105 million shares or $324 million (₹2,700 crore). However, with the revised 20% price band in place, the exclusion process is expected to proceed smoothly, according to the brokerage.

Despite being removed from the Sensex, Jio Financial continues to be included in the MSCI and FTSE indices.

Price Action: Jio Financial’s share price was up 0.75% at ₹254.75 at open on Thursday.

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