Jio Financial Services Hits 52-Week Low Amid Market Sell-Off; Should Investors Hold for the Long Term?
JIO Share Price of Jio Financial Services, the financial arm of Mukesh Ambani-led Reliance Industries, hit a new 52-week low on February 12 amid heavy selling pressure. The stock opened in the red at ₹233 and dropped over 5% to touch ₹233.23 on the NSE, marking its lowest level in a year.
Jio Financial Services has seen a sharp decline of nearly 45% from its peak of ₹394.79, recorded on April 23, 2024. With such a significant correction, investors are now questioning whether to buy at lower levels for long-term gains or exit the stock.
Analyst View: Is Jio Financial a Long-Term Buy?
Speaking to ET NOW Swadesh, Santosh Meena of Swastika Investmart noted that Jio Financial Services is still undergoing a price discovery phase. Despite its recent correction, the company is actively expanding into new sectors, including the mutual fund business and the JioFinance app.
“Jio Financial Services is a strong long-term bet. While short-term uncertainty remains, the stock has the potential to create wealth over time,” Meena said.
He advised investors with a long-term perspective of at least five years to HOLD the stock, emphasizing that once Jio Financial’s businesses stabilize, its financial performance will reflect positively on its share price.
Jio Financial Shares Performance and Market Position
Jio Financial Services, a constituent of the Nifty Next 50 index, was demerged from Reliance Industries in 2023, with its price initially derived at ₹261.85.
While the stock is currently under pressure, market experts suggest that patient investors could see strong returns in the long run as the company solidifies its position in the financial services sector.
