Jio Financial Services Ltd (JFSL) share price hits 5% lower circuit after muted listing. Buy, sell or hold?

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₹265 on BSE and at ₹262 on NSE, which is at par with its market value of ₹261.85 (ascertained on JFSL record date). However, pain for shareholders didn't end here and it went down further and hit intraday low of ₹248.90 on NSE and ₹251.75 on BSE — hitting 5 per cent lower circuit on both exchanges. According to stock market experts, fair value of Jio Financial Services share price comes around ₹180 apiece levels and market is expected to discount further as the stock is still trading at much higher price than its fair value.

They said that on the basis of fair value of the company, market cap of Jio Financial Services Ltd would be around ₹1.10 lakh crore to ₹1.15 lakh crore. So, those who have JFSL shares in their portfolio are advised to book profit on any rebound in the stock and re-enter around ₹180 apiece levels. On why Jio Financial Services share price is nosediving after muted listing, Vaibhav Kaushik, Research Analyst at GCL Broking said, "Crash in Jio Financial Services share price was expected as the stock was available at much higher price of its fair value.

But, market was expecting this to happen after touching ₹330 to ₹340 levels. But, it seems that index funds have decided to book profit instead of waiting for other institutional investors move." GCL Broking expert went on to add that fair value of the newly listed stock suggests that its market cap would come down to the tune of ₹1.10 lakh crore to ₹1.15 lakh crore. In that case, Jio Financial Services share price would fall around ₹180 apiece levels.