On Monday last week, the listing of Jio Financial Services Limited shares on BSE and NSE was extremely weak. Shares of Jio Financial Services opened at ₹262 and the stock hit the lower circuit within minutes of listing. Even after this, the weakness in Jio Financial’s share price continued and the stock moved to the lower circuit in all five sessions last week. However, after touching a record low of ₹202 on the NSE, some buying interest was seen during Friday’s trade and the stock closed over 18 percent below the listing price at ₹221 per share.
What is the fair value of the stock?
According to market experts, the ‘sell on rise’ pressure in Jio Financial share price may continue as the fair value of the stock comes around the level of ₹150 to ₹160 per share. According to experts, the fair market value of the stock is around ₹ 1.10 lakh crore, while it had appreciated 60 to 65 per cent before the separation from Reliance Industries Ltd.
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On the outlook for Jio Financial Services shares, Omkar Kamtaker, research analyst at Bonanza Portfolio, said, “Jio Financial shares are in a lower circuit after listing despite LIC buying 6.66 per cent stake in the company. Index funds are the reason for this decline.”
Motilal Oswal Mutual Fund buys stake in JFSL
Despite the weak listing of Jio Financial Services shares in the Indian stock market, Motilal Oswal Mutual Fund bought a stake in the Reliance group company. According to information available on NSE’s website, Motilal Oswal Mutual Fund on Friday bought 3.72 crore shares of Jio Financial Services by paying ₹202.80 per share. This means, Motilal Oswal Mutual Fund bought shares of Jio Financial Services worth ₹7,54,41,60,000 (₹202.80 x 3,72,00,000) or ₹754 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own and not those of Live Hindustan. The information given here is only about stock performance, it is not investment advice. Investing in stock market is subject to risks and consult your advisor before investing. consult.)