Jio Financial Services: Sell Orders Jump Threefold As Shares Hit Lower Circuit Again
Sell orders rose from 3.7 crore shares on Monday to over 11 crore on Tuesday.
Jio Financial Services Ltd. is witnessing high selling pressure as largely passive investors queued up to sell for the second straight day.
The stock opened at the lower price band of 5% and remained at Rs 236.45 apiece, as passive funds and other investors punched sell orders. There were no buyers for the stock for the second straight day and volumes remained tepid.
The stock on Monday had 3.7 crore shares in sell orders on the NSE, which rose to over 11 crore on Tuesday, almost a threefold jump. And with the stock hitting the price band on two consecutive days, it will continue in the index for another three days—going into next Monday (Aug. 28) when parent Reliance Industries Ltd.'s AGM is scheduled.
Passive funds or those tracking the benchmark Nifty 50 or S&P BSE Sensex and global indices are said to own up to 13.1 crore shares. And since JFS will not be part of these indices, all passive funds will have no option but to exit the stock in the next few days before the close of the month.
The 5% circuit on the stock isn't helping as passive funds will have no choice but to wait till they are able to sell their shares.
The stock is also listed under the 'T' series, which means only delivery based buying and selling can take place.
The selling pressure is expected to mount as the stock further slides and domestic mutual funds and retail investors attempt to exit.
