Shares of JBM Auto Ltd. fell on Thursday a day after BSE Ltd. announced that the auto components maker will be replacing Housing Development Finance Corp. on BSE 500.
HDFC will be merge with HDFC Bank Ltd. on July 13 and the mortgage lender will be delisted.
Among several other rejigs, JSW Steel Ltd. will replace HDFC in S&P BSE Sensex, while Zomato Ltd. will be added to S&P BSE 100 in place of HDFC.
LTIMindtree will be replace the company on the NSE Nifty 50, the exchange said on Tuesday.
Shares of JBM Auto tumbled 14.33%, before paring losses to trade 11.23% lower as of 12:39 a.m., compared to a 0.42% advance in the S&P BSE 500.
Total traded volume so far in the day stood at 3.8 times its 30-day average. The relative strength index was at 70.93, implying that the stock may be overbought.
The one analyst tracking the company recommends a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 49.2%.
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