Jio Financial Services shares hit lower limit second day in a row

Amid worries of passive outflows, Jio Financial Services (JFS) shares touched the lower circuit threshold for the second consecutive session.

The demerged financial unit of Reliance Industries witnessed an early trading halt at ₹239.20 on BSE, down 5% from its prior session's price of ₹261.85.

Jio Financial Services made its debut in the stock market on Monday. However, the stock encountered challenges as its shares hit the lower circuit during it's debut trading session on Monday as well.

As per analysts, the weakness is largely driven by institutional selling and that the short term outlook is uncertain due to lack of clarity about business direction and profitability. However, analysts maintain that the long term outlook for the stock is positive.

Meanwhile, Life Insurance Corporation announced that it has acquired a 6.66% stake in Jio Financial Services, the newly demerged financial entity of Reliance Industries.

Prior to the demerger, LIC had a 4.68% stake in RIL which has now translated to a 6.66% JFS stake