- Jio Financial Services’ share price surged by 14% to hit a record high.
- The company’s market capitalization crossed the ₹2 lakh crore mark.
- Strong financial performance and expansion plans drove investor confidence in the stock.
Jio Financial Services’ stock price shot up by over 14% to reach an all-time high during trading on Friday, marking the fifth consecutive day of gains.
The shares of Jio Financial surged to ₹347 each on the BSE, a significant increase. Over the past three months, the company’s shares have jumped by more than 48%, and since the beginning of the year, they’ve climbed over 40%. With this rise, the company’s market value has surpassed ₹2 lakh crore.
Jio Financial Services, which was spun off from Reliance Industries Ltd (RIL), started trading on the stock exchanges on August 21, 2023. Meanwhile, Reliance Industries’ stock price also hit a record high of ₹2,989.40 on the BSE, pushing its market cap above ₹20.1 lakh crore.
Jio Financial Services operates various financial businesses through its subsidiaries, including Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL), as well as a joint venture called Jio Payments Bank Limited (JPBL).
The company recently teamed up with BlackRock, the world’s largest asset manager, to establish an asset management company, investing a total of $300 million.
Analyzing the technical charts, experts note a breakout in the stock’s resistance levels, accompanied by significant trading volumes, indicating increased investor interest. The weekly Bollinger band buy signal suggests growing momentum.
The stock is trading comfortably above its 20, 50, and 100-day simple moving averages (SMA), which are trending upwards. Rajesh Palviya, a technical analyst, recommends buying, holding, or accumulating the stock, with an anticipated price range of ₹330–365 and support levels around ₹290–280.
In terms of fundamentals, the surge in Jio Financial’s shares can be attributed to several factors. Firstly, the company’s strong financial performance and consistent revenue growth have boosted investor confidence.
Secondly, its aggressive expansion plans in digital financial services align well with India’s rapidly growing digital economy. Additionally, being backed by Reliance Jio provides access to financial resources and a vast customer base, further enhancing investor sentiment.
While short-term volatility due to market fluctuations and profit booking is expected, the company’s robust fundamentals and growth prospects suggest a cautiously optimistic outlook in the long run.
Despite a decline in net profit and revenue in the quarter ending December 2023 compared to the previous quarter, Jio Financial Services remains poised to capitalize on India’s expanding digital financial services market.
At the close of trading on Friday, Jio Finance shares settled at ₹335.00 apiece on the BSE, marking a 10.54% increase for the day.