Jio Financial Services Share Price Rallies 6% on SEBI Nod for BlackRock JV; Experts Maintain Positive Outlook

Despite the Indian stock markets, Sensex and Nifty are witnessing a decline for the second consecutive session, shares of Jio Financial Services Limited (JFSL), the financial arm of Mukesh Ambani-led Reliance Group, continued to rally on Wednesday. The stock is up for the second straight day, buoyed by regulatory approval for its joint venture with BlackRock Inc., the world's largest asset management company.

The Securities and Exchange Board of India (SEBI) has given a green signal to the joint venture between JFSL and BlackRock, allowing the new entity-JioBlackRock Asset Management Private Limited (JioBlackRock) to commence business in India. With this clearance, the venture is set to enter the country's booming mutual fund space.

Jio Financial Services Share Price Today

JFSL shares surged to an intraday high of Rs 299.20 in early trade on Tuesday, compared to the previous closing of Rs 291.50 on the Bombay Stock Exchange (BSE). The stock's 52-week high stands at Rs 368.30, touched on June 20, 2023, while its 52-week low is Rs 198.60 recorded on March 3, 2024.

Under SEBI norms, a new asset management company (AMC) can start operations within six months of receiving approval. Notably, Sid Swaminathan has been appointed as the Managing Director (MD) and Chief Executive Officer (CEO) of JioBlackRock.

Jio Financial Services Stock Technical Outlook: Expert's View

On the technical setup, analysts indicate immediate support for the stock in the Rs 270-290 range, while resistance is expected in the Rs 300-310 band.

"Jio Financial has shown a sharp upward move after breaking out from the Rs 230 level. It is currently in an overbought zone, so profit booking may emerge. The Rs 275-270 zone is likely to offer strong support, while Rs 300-310 could act as a resistance in the near term," noted Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One.

AR Ramachandran, a SEBI-registered independent research analyst, echoed similar views, stating that while the stock appears bullish on daily charts, it remains overbought. He advised investors to book profits, adding that a close below Rs 290 could trigger a short-term decline towards Rs 271, as per BT report.

"We remain positive on Jio Financial for the long term with a target price of around Rs 350," said Gaurang Shah, Senior Vice President at Geojit Financial Services. "The stock had taken support near Rs 210 in April and is now inching towards Rs 300. The market always presents opportunities-it's up to investors to seize them," BT cited.

Mutual Fund Industry Outlook

India's mutual fund industry continues to grow at a robust pace. As of April-end, the industry's assets under management (AUM) stood at a record Rs 70 lakh crore. With SEBI's approval, JioBlackRock becomes the 48th AMC to enter the Indian market.

The industry has recorded a compound annual growth rate (CAGR) of 18% over the past decade. There are now 8.89 crore systematic investment plans (SIPs) in operation, with monthly SIP inflows reaching Rs 26,632 crore.