Shares of Reliance Nippon Life Asset Management Ltd jumped as much as 4.8 per cent to Rs 287.95, its highest since November 14. Reliance Nippon stock gained as CLSA has initiated coverage on Reliance Nippon Life AMC with a 'buy' rating and a target price of Rs 325.
The brokerage said that India's third-largest asset manager should benefit from rising penetration and ability to leverage strong retail presence. Reliance Nippon Life is also poised to benefit from its presence in the country's below top-15 cities, where it has a market share of 12 per cent.
According to CLSA, robust earnings growth and high dividend payouts will aid investor returns.
The company shares ended up by 2.73 per cent at Rs 280.75 on the BSE. On the NSE, the stock was up 3.17 per cent at Rs 283.50.