Jio Financial Services shares rise nearly 3% after RBI approval as core investment company

Jio Financial had applied for the company's conversion to CIC as mandated by the banking watchdog. The regulator had mandated the company to undertake the conversion exercise while giving its approval for change in the shareholding pattern and control of the company pursuant to the demerger of the financial services business from Reliance Industries Limited (RIL).

A core investment company, as defined by the RBI, engages in the acquisition of shares and securities. It must have an asset size exceeding Rs 100 crore and maintain at least 90% of its net assets in the form of investments in equity shares, preference shares, bonds, debentures, or loans in group companies. Additionally, its investments in equity shares of group companies must constitute no less than 60% of its net assets, as per RBI circular guidelines.

At 10:25 am, the stock was trading 1% higher at Rs 351.6 on the BSE. Year-to-date, it has surged 50%, and over the past six months, it has gained 38%.

In technical terms, the relative strength index (RSI) of the stock is currently at 44.1. An RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. Additionally, the MACD is at 1.2, which is below its signal and center line, this is a strong bearish indicator.

Moreover, the stock price is higher than the 5-day, 10-day, 100-day, 150-day, and 200-day simple moving averages (SMAs). However, it is trading lower than the 20-day, 30-day, and 50-day SMAs.

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