Goldman upgrades RIL to buy, shares rise
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Goldman Sachs has upgraded Reliance Industries to buy from neutral, citing a potential lift in margins on increased refining and recovering oil demand, sending the refiner's shares up in pre-open trade on Tuesday.
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"We believe that an upcycle in refining will lift margins and is likely to drive an earnings surprise for RIL over the medium term, by offsetting lackluster E&P performance," the bank said in a report dated on Monday.
Goldman raised its target prices for the oil and gas major to 970 rupees from 960 rupees previously.
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Reliance, controlled by Mukesh Ambani, India's richest man, opened a share buyback on February 1 as it looks to prop up its underperforming shares by spending up to $2.1 billion to buy back shares at a maximum price of 870 rupees each.
Reliance shares were up 1.1 percent at 842 rupees in pre-open trade on Tuesday.
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