Jio Financial shares climb 5% from day's low level; here's why

Shares of Jio Financial Services Ltd (JFSL) staged a recovery in Tuesday's afternoon session, rebounding after an initial decline in early trade. The stock, which slipped to Rs 279.15, rose 4.69 per cent from the day's low level to hit Rs 292.25.

The upward move came after JioBlackRock Asset Management Pvt Ltd, the 50:50 joint venture (JV) between JFSL and global investment management giant BlackRock Inc, received regulatory approval from the Securities and Exchange Board of India (Sebi) to commence its mutual fund operations in the country.

The venture aims to offer a digital-first investment platform catering to retail and institutional investors in India. Focussing on low-cost, institutional-grade products, JioBlackRock is expected to introduce a new era of investing by combining global expertise with local accessibility.

JioBlackRock plans to leverage the unique strengths of its two sponsors — JFSL's digital infrastructure and deep knowledge of the Indian market and BlackRock's global investment expertise, along with its industry-leading risk management platform, Aladdin.

According to the company, key differentiators will include transparent and competitive pricing, innovative product offerings, and the application of BlackRock's proprietary risk management technologies to ensure robust portfolio construction and performance tracking.

Sid Swaminathan, former Head of International Index Equity at BlackRock, has been named Managing Director & CEO of the JV. He has also led BlackRock's fixed-income strategies for Europe.

JioBlackRock's entry comes at a time when India's mutual fund industry is witnessing rapid growth, fuelled by increased digital adoption and rising investor interest in diversified financial products.

As per BSE, JFSL's stock has a price-to-earnings (P/E) ratio of 338.04 against a price-to-book (P/B) value of 7.21. Earnings per share (EPS) stood at 0.83 with a return on equity (RoE) of 2.13. According to Trendlyne data, Jio Financial has a one-year beta of 1.4, indicating high volatility.

Promoters held a 47.12 per cent stake in the Reliance Industries Ltd (RIL)-backed entity as of March 2025.