Jio Financial Share Price Falls; Company Launches Loans Against Securities

Jio Financial Services Ltd. share price declined, tracking the overall sombre mood in domestic markets Wednesday. The NSE Nifty and BSE Sensex opened lower as an additional 26% tariff from the US takes effect. Jio Financial Services is the fifth top loser among Nifty 50 stocks.

Jio Financial Services launched a digital loan against securities Tuesday. Customers can avail themselves of up to Rs 1 crore in loans in just 10 minutes through the Jio Finance application. The process is completely digital. Using this facility, customers can get loans against shares and mutual funds. The interest rate is starting at 9.99% for these loans, and the maximum tenure is three years.

Following the launch of the digital loan service, Jio Financial Services share price rose Tuesday, snapping a two-day winning streak. However, in Wednesday's session it reversed gains.

Jio Financial Services share price declined 2.70% to Rs 218.70 apiece. It was trading 2.46% down at Rs 219.20 apiece as of 9:40 a.m., as compared to a 0.68% decline in the NSE Nifty 50 index.

The stock declined 40.30% in 12 months and 26.51% on a year-to-date basis. Total traded volume so far in the day stood at 1.0 times its 30-day average. The relative strength index was at 45.51.

One analyst tracking the company maintains 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 30.5%.