News

Published: February 23, 2024
Updated: February 23, 2024

Jio Financial Services Surges to Record High: Market Cap Crosses ₹2 Lakh Crore

Record-Breaking Rally:

Jio Financial Services witnessed an impressive surge, with its share price jumping over 14% to reach an all-time high. This marked the fifth consecutive session of gains, with shares hitting ₹347 apiece on the BSE.

Stellar Performance:

Over the past three months, Jio Financial Services shares have soared by more than 48%, and on a year-to-date basis, the increase stands at over 40%. This remarkable performance has propelled its market capitalization beyond the ₹2 lakh crore mark.

Strategic Demerger:

Following its demerger from Reliance Industries Ltd (RIL) on August 21, 2023, Jio Financial Services has been making significant strides in the financial sector.

Synergistic Ventures:

The company operates through various consumer-facing subsidiaries, including Jio Finance Limited, Jio Insurance Broking Limited, and Jio Payment Solutions Limited, along with the joint venture Jio Payments Bank Limited.

Strategic Partnership:

In a notable move, Jio Financial Services has partnered with BlackRock, the world's largest asset manager, to establish an asset management company, signalling a strategic alignment with global financial leaders.

Technical Analysis and Outlook:

Chart Analysis:

Technical charts indicate a "multiple resistance" breakout within the range of ₹268–270 levels, coupled with substantial trading volumes, signalling heightened market participation.

Positive Momentum:

Weekly Bollinger band signals suggest an uptrend with increased momentum. The stock remains comfortably positioned above key moving averages, indicating bullish sentiment.

Investment Recommendation:

Experts advise investors to consider buying, holding, and accumulating Jio Financial Services stock. They project an upside potential ranging from ₹330 to ₹365, with a supportive downside zone at ₹290–280 levels.

Financial Snapshot:

Quarterly Performance:

In the quarter ending December 2023, Jio Financial Services reported a consolidated net profit of ₹293.82 crore, witnessing a decline of 56% compared to the previous quarter. Similarly, consolidated revenue from operations experienced a sequential decline of 32% to ₹413.61 crore.

Market Response:

As of 10:55 am, Jio Finance shares were trading 8.13% higher at ₹327.70 apiece on the BSE, reflecting continued investor optimism and market confidence in the company's growth trajectory. The remarkable surge in Jio Financial Services shares underscores its robust performance and strategic positioning in the financial landscape. With promising partnerships and continued market momentum, the company remains poised for further growth and value creation for its stakeholders.