Jio Financial Services stock declines 5% for a fourth straight day

Shares of Jio Financial Services (Jio Fin) declined 5 per cent for a fourth straight day on Thursday, with 28 million shares changing hands. The unit, spun off from Reliance Industries Ltd (RIL), has shed 18.5 per cent during its maiden trading week. 

The sharp drawdown has been on account of selling pressure from exchange-traded funds and global depository receipt holders. Analysts estimate selling to the tune of $900 million (nearly Rs 7,500 crore) from these two classes of investors, which are no longer required to hold Jio Fin shares allotted to them in return for their shareholding in parent RIL. 

Now valued at Rs 1.36 trillion, Jio Fin has lost Rs 30,000 crore of its value this week. Analysts are expecting cues from RIL’s annual general meeting on Monday to see the group’s plans for Jio Fin.