Shares of Reliance Industries Ltd (RIL) subsidiary Jio Financial Services Ltd (JFSL) rallied 4 percent in Monday's trade, ahead of the 46th annual general meeting (AGM) of Reliance Industries Limited, scheduled for August 28. At 11:09 am, the scrip was trading 2.45 percent higher at Rs 219.75 apiece on the NSE.

Share Market Live

NSE

JFSL shares, which have been falling ever since they got listed on stock exchanges last week, climbed over 4 percent to hit a an intra-day high of Rs 222.25 on NSE. The stock swung repeatedly between gains and losses in extremely volatile trading sessions.

It tumbled 1.69 percent on Friday and hit a lower circuit of 5 percent each on the preceding three trading sessions. With today's gain, Jio Financial is commanding a market capitalisation of Rs 1.40 lakh crore, as against Rs 1.68 lakh crore at the time of its listing.

"Only after the AGM on August 28, we can expect some development in the JFSL’s business plan. We stand neutral on the counter and wait for the AGM development, which can give a clear picture of the future outlook," said Prashanth Tapse, Research Analyst- Senior VP Research at Mehta Equities.

While a host of decisions are expected to unfold around new energy ambitions, succession plans, retail services and the telecom sector, the newly formed JFSL will be in focus as it was recently listed on the stock exchanges. The RIL AGM may lay out a future plan for JFSL that was demerged from RIL last month.

Motilal Oswal MF picks 0.6% stake in JFSL

On Friday, Motilal Oswal Mutual Fund bought 3.72 crore shares or a 0.6 percent stake of Jio Financial worth Rs 754 crore, according to data from exchanges. This is one of their largest market purchases ever. The shares were bought at Rs 202.8 apiece.

JFSL is currently part of key indices of the BSE and NSE, including the Sensex and Nifty 50.

JFSL was to exit all S&P BSE indices on August 29, provided it did not hit the lower circuit in a 3-day period. Since the stock had hit a lower circuit in Thursday's trade, the removal date has been deferred to to August 31. The stock will now be removed from the indices before opening of trading on September 1.

Since listing, the stock has been trading in the Trade-To-Trade (T2T) segment, under which shares can only be purchased through the delivery mechanism and not on an intraday basis.

Jio Financial was added to key indices on July 20 for a temporary period, to give passive and active funds holding the stock of Reliance, an opportunity to trade in the demerged entity. The stock was added at a constant price of Rs 261.8, derived through a special pre-open session conducted by the exchanges on RIL stock.

Shares of parent RIL gained up to 1 percent to hit Rs 2,484 on the NSE in trade today.