16 April 2024 – Tuesday saw a 5% increase in shares of Jio Financial Services, the financial services division of Nifty 50 heavyweight Reliance Industries Ltd. This came after the firm and BlackRock established a 50:50 joint venture to start a wealth management and brokerage company.
The share was up 2.55% at ₹363.35 per share on the NSE at 1:00 PM. Throughout the last six months, Jio shares have increased by almost 60%. Notably, from November of last year to March of this year, JFSL continuously produced positive monthly returns.
“This joint venture further strengthens the company’s relationship with BlackRock, Inc., with whom it had announced a 50:50 joint venture on July 26, 2023, to transform India’s asset management industry through a digital-first offering and democratise access to investment solutions for investors in India,” according to a filing with the exchange.
Conclusion
Statutes and regulations need to approve the wealth management and brokerage organisations before they may open for operation. The recently established joint venture might face competition from wealth management companies managed by banks and companies such as Avendus, 360 One, BNP Paribas Wealth Management, and Nuvama. This news precedes the company’s fourth-quarter results, which are anticipated on April 19.
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