Explained: Why Jio Financial Services share price surged over 6% today

Jio Financial Services share price: At midday, JFS shares were trading at Rs 318.70, marking a 6.45% increase. The development came as a relief for the stock, which has seen declines in recent months but has gained attention for its potential in the derivatives market.

In Short

• JFS shares soar over 6% after NSE's F&O inclusion
• NSE adds JFS, 44 other stocks to F&O list
• F&O listing update takes effect on November 29

Jio Financial Services (JFS) saw its shares jump over 6% on Thursday, fuelled by the National Stock Exchange (NSE) announcement that it will add JFS and 44 other stocks to its futures and options (F&O) trading segment.

At midday, JFS shares were trading at Rs 318.70, marking a 6.45% increase. The development came as a relief for the stock, which has seen declines in recent months but has gained attention for its potential in the derivatives market.

The F&O listing update from the NSE will take effect on November 29, bringing a range of prominent companies into the fold, including Zomato, DMart, Paytm, LIC, YES Bank, and various Adani Group companies such as Adani Energy, Adani Green Energy, and Adani Total Gas.

Other stocks like Nykaa, CDSL, Tata Elxsi, KPIT Technologies, and JSW Energy are also set to join, broadening the selection of liquid stocks available for derivatives trading.

For stocks to qualify for the F&O segment, the NSE requires a strong liquidity profile, including a high average daily turnover and a controlled level of volatility.

The screening process is intended to create a more stable trading environment for derivatives, allowing investors to engage in trades with minimised risk of extreme price fluctuations.

F&O trading, which involves derivatives based on the underlying stock value, enables investors to take leveraged positions with a lower initial investment compared to direct stock purchases.

In its latest quarterly results for Q2 of FY25, JFS reported a modest 3% rise in net profit to Rs 689 crore, up from Rs 668 crore in the same period last year.

The company’s revenue from operations showed a stronger increase, climbing 14% year-on-year to reach Rs 693.50 crore, compared to Rs 608.04 crore in the corresponding quarter of the previous fiscal year.

The inclusion in the F&O segment may provide a new boost for JFS, offering investors greater flexibility and an alternative to traditional stock trading as the company continues to expand its financial footprint.