Tuesday's trading saw a strong increase in shares of Jio Financial Services Ltd. following the announcement by the non-banking financial company (NBFC) that it had partnered with BlackRock. Today, the stock increased 4.90 percent to close at Rs 371.75, the day's high. Its current value was 1.84 per cent less than its all-time high of Rs 378.70, which was reached last week on April 8.
Jio Financial announced that it has formed a 50:50 joint venture (JV) with BlackRock Inc. and BlackRock Advisors Singapore Pte Ltd to establish a wealth management and brokerage company in India.
This is BlackRock and Jio's second joint venture. A partnership for asset management was started by the two last year. "This JV further strengthens the company's relationship with Blackrock, with whom Jio had announced a 50:50 joint venture on July 26, 2023 to transform India's asset management industry through a digital-first offering and democratise access to investment solutions for investors in India," said the NBFC.
"With support from BlackRock, we anticipate Jio to develop cutting-edge goods. According to Business Today TV, Gaurav Dua, Senior VP and Head of Capital Market Strategy at Sharekhan by BNP Paribas, "the company is set to create a lot of disruptions in the space."
The market analyst said that because Sharekhan's business intentions are unclear, the company does not currently have a buy or sell call on the counter.
"The stock has established a new foundation between Rs 340 and Rs 350. Even at this stage, it appears promising since new money is pursuing the stock. Additionally, Ashish Chaturmohta, Executive Director and Fund Manager at JM Financial, stated that the anticipated upside objective for Jio Financial would be Rs 450.
The last time shares were observed trading on the BSE today was about 28.99 lakh shares. The amount was less than the 30.23 lakh share two-week average. With 106.42 crore in turnover, the counter had a market capitalization (m-cap) of Rs 2,31,831.34 crore. Today, there were 9,00,515 sell orders compared to 4,63,883 buy orders for shares.
Promoters owned 47.12 percent of the non-banking financing corporation (NBFC) as of December 2023. On April 19, 2024, Jio Financial is expected to release its quarterly results.
