Jio, Tata, and IREDA: The Association of Mutual Funds in India (AMFI) is the organization of the mutual fund industry. They made a big announcement on January 4. In this, AMFI released the list of new market categories for the first half of 2024. What is that list? Will know in this article.
Jio, Tata, and IREDA Make Headlines with Category Changes
The three companies that have made the most headlines in this list are Mukesh Ambani's Jio Financial Services, Tata Technologies, and IREDA (Indian Renewable Energy Development Agency Ltd).Â
Jio Financial has now become large cap, while Tata Tech and IREDA have become mid-cap stocks from small cap. The big thing is that all these three shares were listed in the market last year. They have been in the headlines since then.
Jio Financial Services IPO
When Jio Financial Services demerged from Reliance and got listed in the stock market, there was a lot of discussion about it. Anyone who held even one share of Reliance got one share of Jio Financial for free.
Tata Tech IPO
Similarly, there was tremendous interest among investors when Tata Tech's IPO came. When the share was listed on the market, it broke all records. Tata Tech shares with an issue price of ₹500 were directly listed at ₹1,200.
IREDA IPO
The same was seen in IREDA also. IREDA's share price of ₹32 reached ₹123 within a few days of its listing.
Mutual fund houses have also sensed the strong future of these three shares. In November 2023, they showed considerable interest in them and bought them heavily.
Buying and Selling Trends of Mutual Funds
If we look at the buying and selling trends of mutual funds, it is found that at the end of November 2023, mutual funds held Tata Tech shares worth Rs 1,120 crore. Similarly, an investment of Rs 760 crore by mutual funds is visible in IREDA. However, mutual funds have reduced their holding in Jio Financial by two percent.
Data from November shows that mutual funds bought over Rs 1000 crore of Petronet LNG. Apart from this, there is an investment of Rs 670 crore in Power Grid and Rs 610 crore in Aurobindo Pharma.Â
Mutual funds have invested Rs 560 crore in Tata Motors and Rs 530 crore in Tata Power. Mutual funds made good purchases here too.
In November 2023, mutual funds bought 58 lakh shares of Bajaj Finance, worth Rs 4,100 crore. Apart from this, mutual funds have bought shares worth Rs 1420 crore in Kotak Mahindra Bank.
Jio, Tata, and IREDA Performance of Shares
However, if we talk about the performance of shares, Tata Tech shares have become a victim of profit booking after a strong listing. This share reached a high of Rs 1,400 on the day of listing. Since then, it has fallen by 10%. On Friday, Tata Tech shares were trading at 1173.
However, the performance of IREDA shares has been good. This share has reached a high of ₹ 123.20. The stock has given returns of around 75 percent since the day of listing on November 29. It is currently trading at around ₹105.
Similarly, Jio Financial Services' share is currently trading above ₹213. However, this share is currently running at a loss of around 2% since the day of listing. Its 52-week high is ₹267, while it has reached a low of ₹202.80.
By changing the category of these AMFI shares to mid and large-cap, the mutual fund industry can renew investor interest in these shares. It remains to be seen whether Tata Tech, IREDA, and Jio Financial will be named in 2024. Investors wonder if they will make money in these three companies.
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