Morgan Stanley cuts RIL to 'underweight' on outlook

Last Updated: Mon, Oct 08, 2012 05:03 hrs

Morgan Stanley cut its rating on Reliance Industries to 'underweight' from 'equal-weight', citing lack of near-term triggers, expectations for weaker refining margins and valuation.

The investment bank also cited concerns about Reliance's investments into businesses that offer "low" return-on-equity, as well as a subdued outlook on petrochemicals in a noted on Monday.

Morgan Stanley cut its price target on the stock to 703 rupees from 742 rupees. Reliance shares were down 1.2 percent at 847.20 rupees as of 9:36 a.m.

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