Shares of Reliance Industries Limited (RIL) fell more than 1% in early trading on Monday, after the financial unit split, Jio Financial Services (JFS) listed weakly.
RIL stock fell 0.89% to Rs 2,525 on the National Stock Exchange (NSE), while JFS was a big loser after hitting 5% lower to trade at Rs 248.90 per share.
JFS started trading at Rs 262 per share on the NSE and Rs 265 on the Bombay Stock Exchange (BSE). Even so, the company's shares came under selling pressure and caused a 5% lower circuit on both exchanges, as analysts had predicted.
Shares of JFS fell 5% on the NSE at Rs 248.9 per share and on the BSE they traded at Rs 251.75, also down 5%. As a result, the overall market capitalization of the company reached nearly Rs 1.59 lakh.
Prior to the listing, analysts pointed out that the stock's potential for massive volatility was limited by the 5% circuit breaker. However, they also note that the company may be under selling pressure as many existing shareholders choose to secure their profits.
It looks like JFS's low rating also has an impact on shares of Reliance Industries, as the heavyweight continues to face selling pressure during early trading.
