The Securities and Exchange Board of India (SEBI) gave an in-principle nod for Jio Financial Services to set up a mutual fund business with the $10 trillion asset management firm BlackRock on Friday after the closing bell, leading to bullish momentum for Jio Financial shares and its tie-up with BlackRock.
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However, Jio shares shot up 3% on Monday’s opening bell but took a U-turn after the day’s trade stabilized. The stock then turned to red, falling nearly 2% in the charts despite its tie-up with BlackRock. The dip is lucrative to investors who are waiting for an opportunity to buy it.
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Why Did Jio Shares Fall 2% Today, Even After The Mutual Fund’s Collaboration With BlackRock?
Source: Upstox
While Jio shares attracted bullish sentiments on Monday’s opening bell, the broader stock market dropped its price. Sensex and Nifty are trading in the red today, and the development is affecting the stock. Nifty dipped 150 points on Monday, while Sensex plummeted more than 350 points in the day’s trade.
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This removed the sheen of Jio Financial shares, making them turn red an hour after they spiked 3% in the charts. The stock is currently hovering around the 332 range and fell to a day’s low of 329. It is now near its one-month low and offers a massive buying opportunity for investors to accumulate the dip.
The collaboration with BlackRock is a massive deal that could push Jio Financial shares to new monthly highs. Tensions in Israel, Palestine, and Iran are dampening the spirits of the global stock markets. Institutional funds are pulling the plug on equities as tensions in the Middle East escalate.
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Every dip from here could be a buy signal for Jio Financial shares as it could head north when the market stabilizes. Check out a realistic price prediction of when Jio could cross the Rs 400 mark next.