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


After spin-off from Reliance Industries Limited (RIL), Jio Financial Services share price listed on BSE and NSE during Monday session. However, JFSL shares had a muted listing in Indian stock market as 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). 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.”

Jio Financial Services share price

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. He advised JFSL shareholders to exit in any rebound in the scrip.

Speaking on Jio Financial Services share listing, Chandan Taparia, Derivative and Technical Analyst at Motilal Oswal said, “Those who got Jio Financial Services shares through allotment, they are advised to hold the stock with stop loss at 232 apiece levels.”

The equity shares of Jio Financial Services Ltd (Formerly known as Reliance Strategic Investments Limited) has been admitted to dealings on the Exchange in the list of T Group of Securities. Jio financial Services Ltd share price will be in Trade-for-Trade segment for 10 trading days.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 21 Aug 2023, 11:40 AM IST

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