look news india
The moment for which crores of investors were eagerly waiting for months in the Indian stock market has finally arrived. The country’s largest telecom and digital service provider company Reliance Jio (Jio IPO) has created history by making a big impact in the stock market. With the listing on Dalal Street, Jio shares filled the investors’ bags with happiness and gave a bumper listing gain of Rs 239 per share. This largest and most talked about listing in Indian corporate history has also given a tremendous boost to the main indices of the stock market. After this spectacular debut in the market, the biggest question now arising in the minds of retail and institutional investors is whether they should immediately book this huge profit and exit or retain the stock in their portfolio for bigger future returns.
#1 Complete mathematics of record breaking market entry and listing gain of Jio IPO
Reliance Jio’s IPO was listed in the stock market at a premium price, which brought a big smile on the faces of investors in the very first minutes. The level at which the upper price band of the share was fixed in the IPO, at the time of listing, opened with a huge rise of Rs 239 per share on the basis of strong buying in the market. For example, investors who were allotted even one lot of IPO got direct profit of thousands of rupees on the day of listing. Trading volume of Jio shares crossed record levels on both major exchanges NSE and BSE. Stock market veterans and market analysts say that this historic listing is a direct result of the unwavering confidence of the Indian digital economy and investors, which has written a new history in the primary market.
#1 Exit after booking profits or stay for the long run? Know the opinion of market experts
After this dream listing of Jio, the biggest question is what should be the future strategy of the investors. Well-known stock market analysts and brokerage houses believe that investors who had entered the market only for the purpose of short-term i.e. listing gains, can protect themselves by booking some part of their profits (partial profits). However, for investors who are eyeing long-term wealth creation, holding on to Jio shares can prove to be very beneficial. Experts say that the rapid expansion of 5G network, Artificial Intelligence (AI) based digital services, and increasing scope of JioFiber is going to increase the company’s revenue manifold in the coming time. In such a situation, long term investors can hold it by making it a main share of their portfolio.
#1 Indian digital sector and future development plans of Reliance Jio
Jio is no longer just a telecom company, but has become a huge tech-ecosystem which remains the backbone of the country’s digital revolution. The company is going to spend a large part of the huge funds raised from the IPO in strengthening its 5G and upcoming 6G infrastructure, setting up new data centers and expanding cloud computing services. Apart from this, the company is focusing on continuously improving its ARPU (average revenue per user), which will see further improvement in its profit margin. This strong financial foundation of the company and its future-oriented strategy has the potential to make it one of the biggest multibagger stocks in the Indian stock market in the coming years, capable of providing consistent and stable returns to investors.
#1 Should new investors buy at this price or wait for the right opportunity?
Retail investors who could not get even a single share during the IPO allotment are now confused whether fresh entry should be taken at the current listing price. Financial advisors suggest that it would be wiser to wait for the initial chaos and volatility of the listing day to subside. If in the coming days, due to any correction in the market, there is some profit booking or decline in the shares, then it can prove to be a great opportunity for new investors to buy in installments (SIP mode). Overall, this explosive start of Jio is a historic moment for the economic scenario of the country, which gives strong confidence to the investors of giving excellent returns in future also.