Jio Financial Shares in Focus After Big Block Deal—What Investors Should Know
Jio Financial Services’ shares are in the spotlight today after a large block deal of 10.8 lakh shares was reported by ET NOW. This deal comes at a crucial time as the stock is expected to join the Nifty 50 index by the end of March.
Stock Performance: Falling Trend Continues
The stock has been struggling in recent months. Over the past six months, it has dropped by 31.01%, and in just the last month, it has lost 8.77% of its value. Technically, the stock remains weak, as it is trading below all key moving averages, including the 200-day SMA. Its 14-day Relative Strength Index (RSI) stands at 36.4, close to the oversold zone.
Company’s Financial Performance: Modest Growth
For the third quarter of FY25, Jio Financial reported a slight increase of 0.32% in its net profit, reaching ₹294.78 crore, compared to ₹293.82 crore in the same quarter last year. Meanwhile, its revenue grew by 5.98% to ₹438.35 crore in the December 2024 quarter.
Upcoming Nifty 50 Inclusion: A Positive Trigger
Despite the falling stock price, Jio Financial got a major boost when NSE Indices announced that it will be added to the Nifty 50 index by March-end. This is expected to attract fresh investments from index funds, which must adjust their portfolios accordingly.
Potential Inflows: A $404 Million Opportunity
JM Financial, a domestic brokerage, predicts that Jio Financial’s inclusion in the Nifty 50 could bring in around $404 million in passive inflows as funds tracking the index buy the stock.
Stock Market Debut and Current Status
Jio Financial entered the stock market in August 2023, listing at ₹265 on the BSE and ₹262 on the NSE, slightly above its discovered price of ₹261.85 per share. However, it has faced challenges since then.
Our Take on the Stock
Jio Financial Services has strong backing as part of the Reliance Group, and its inclusion in the Nifty 50 could drive significant investment. However, the recent stock decline and weak technical indicators suggest caution for short-term investors. Long-term investors may see this as an opportunity to buy at lower levels, expecting future growth.