Will Jio Financial’s entry into MSCI, FTSE elite group change anything for index fund trackers?

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Key Points

As a result, no fresh inflows or outflows is likely with respect to FTSE and MSCI.Selling pressure for Jio Financial shares may continue..

Even as the recent debutant Jio Financial Services will eventually see its exit from domestic benchmarks Nifty 50 and Sensex, the stock will remain among the elite group of MSCI and FTSE indices...

FTSE Russell added Jio Financial back to the All-World cap index and a few others, while MSCI Inc will add the stock to its Global Standard and Largecap indices after market trading hours on Wednesday...

Back home, for two consecutive sessions, Jio Financial shares have hit the lower circuit of 5% due to selling by passive index funds, tracking the Sensex and Nifty 50...

As part of this revised rule, Jio Financial was added to Nifty 50 and Sensex temporarily to let passive and active index funds adjust their portfolio for the demerger scheme...

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