RIL scrip falls for fifth day in a row

Extending its decline for the fifth straight session today, shares of Reliance Industries (RIL) fell by over 1% in the morning trade on the bourses amid media reports that banking major HSBC has downgraded the energy major to "neutral" from "overweight".

Shares of RIL, slipped by 1.18% to touch a month's low of Rs 890.10 on the BSE, while on the NSE, the stock went down by 1.24% to a low of Rs 889.35.

In the past four trading sessions, RIL's counter has shed over 5%.

Analysts said the bellwether stock has come under further selling pressure after a recent report by the Comptroller and Auditor General (CAG) said the Oil Ministry and its technical arm, the DGH, allegedly favoured RIL by allowing it to double the development cost of its landmark KG-D6 gas field.

However, the company has denied any wrongdoing.

According to media reports, HSBC has downgraded RIL to "neutral" from "overweight" and cut the price target to Rs 1,040 from Rs 1,084.

Meanwhile, the Home Ministry has given unconditional approval for UK's BP to buy a 30% stake in Reliance Industries' oil and gas blocks, including the showcase KG-D6 gas fields, for $7.2 billion.

RIL has underperformed the benchmark Sensex by 12% over the last three months on concerns of falling gas production from its KG-D6 block, HSBC said, as per the media reports.

Meanwhile, the BSE benchmark Sensex was trading lower by 94.74 points at 18,037.50 at 1028 hours.