Following its separation from Reliance Industries Limited (RIL), Jio Financial Services’ stock price began trading on the BSE and NSE on Monday. The Jio Financial Services share price opened at 265 on BSE and at 262 on NSE, which is at par with its market value of 261.85 (ascertained on JFSL record date), but JFSL shares had a muted listing in the Indian stock market. The suffering of the shareholders didn’t stop there, though, as the stock continued to decline and hit intraday lows of $248.90 on the NSE and $251.75 on the BSE, respectively, hitting a 5% lower circuit on both exchanges.
Experts in the stock market estimate that Jio Financial Services’ share price is around 180 rupees per unit, and the market is likely to discount this price even further given that the stock is currently trading much above that estimate. According to them, Jio Financial Services Ltd’s market cap would be between Rs. 1.10 lakh crore and Rs. 1.15 lakh crore based on the company’s fair value. Therefore, it is advised to book profits on any stock rebound and re-enter around 180 per share for those who own JFSL shares.
Jio Financial Services Share Price
According to Vaibhav Kaushik, a Research Analyst at GCL Broking, the share price of Jio Financial Services has plummeted after a muted listing because the stock was available for much more than its fair value. However, the market had anticipated this after it reached levels between 330 and 340. However, it appears that rather than waiting for other institutional investors to act, index funds have chosen to book profits.
GCL The broker expert continued by saying that the newly listed stock’s fair value indicates that its market cap will drop to between 1.10 lakh crore and 1.15 lakh crore. In that scenario, the share price of Jio Financial Services would decrease to about 180 per unit. He advised JFSL stockholders to sell if the price started to rise.
Speaking about the listing of Jio Financial Services shares, Chandan Taparia, a derivative and technical analyst at Motilal Oswal, advised those who received shares through allotment to hold the stock with a stop loss at levels of 232 per share.
Jio Financial Services Ltd’s equity shares have been approved for trading on the Exchange. They are now included in the T Group of Securities list. For ten trading days, the share price of Jio Financial Services Ltd. will be in the Trade-for-Trade segment.