Jio Financial share price dips 18% after weak listing. Buy, sell or wait?
₹262 and within few minutes of listing the stock went on to hit lower circuit. However, weakness in Jio Financial share price continued further and the scrip went on to hit lower circuit on all five sessions last week.
However, after making record low of ₹202 on NSE, some buying interest was witnessed during Friday deals and the scrip ended at ₹221 apiece levels, losing over 18 per cent from the listing price. According to stock market experts, Jio Financial share price may continue to witness 'sell on rise' pressure as fair value of the stock comes around ₹150 to ₹160 per share levels.
They said that fair market value of the stocks comes around ₹1.10 lakh crore while it ascended to the tune of 60 to 65 per cent higher ahead of demerger from Reliance Industries Ltd. On outlook for Jio Financial Services shares, Omkar Kamtekar, Research Analyst at Bonanza Portfolio said, "Jio Financial share price has been locking lower circuit since listing despite LIC buying 6.66 per cent stake in the company.
The reason for this slide has been index funds that hold JIOFIN, both domestic and foreign who would be forced to exit once the impending exclusion of the scrip from the index is confirmed." Advising stock market investors to remain vigilant about the Reliance AGM scheduled on Monday, Bonanza Portfolio expert said, "At current juncture JIOFIN the scale of business is nominal but has plenty of opportunities for organic and inorganic expansion and hence D-street is pricing in the same. While JIOFIN has announced its tie-up with Blackrock, the world’s largest asset manager, to float a mutual fund company, no formal announcements of a foray into the lending business has been made.
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