MUMBAI – Shares of Jio Financial Services have been on a joyride in line with the market, with the stock gaining more than 11% in just three sessions and hitting an over two-month high in trade on Wednesday.
The stock was up nearly 2% in trade on Wednesday on the National Stock Exchange at Rs 247.10. Intraday, it touched a high of Rs 251.60, which is the highest level since September 12.
The gains on Wednesday were backed by strong volumes of more than 40 million shares, which was double the three-month daily average volume of 20 million shares.
A positive market has aided the gains in the shares of Reliance Industries’ subsidiary.
Stocks have been running northwards non-stop in the last seven sessions, with most of the gains coming in this week after the Bharatiya Janata Party got a strong mandate in three key states of Chhattisgarh, Madhya Pradesh, and Rajasthan during the recently concluded assembly polls.
The strong show by the BJP was seen as a semi-final win ahead of the crucial general elections next year.
As for Jio Financial, technical analysts hold a positive view on the stock and see the momentum sustaining. If the momentum sustains, then the stock can test Rs 260 levels soon, said a technical analyst with a domestic brokerage.
Recently, RIL also received the Reserve Bank of India’s approval to appoint Isha Mukesh Ambani and two others as directors of the NBFC arm.
According to recent reports, Jio Financial was in early talks with merchant bankers for its maiden bond issue. The company was considering raising $600 million to $1.2 billion through the issue.
The NBFC arm of RIL got listed on the bourses in August this year, and it aims to become a full-fledged financial services firm across segments such as automobiles, home loans, and other products. It has also chalked out plans to enter into the mutual fund industry and joined hands with BlackRock.
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