HSBC downgrades RCom, cuts target

HSBC has downgraded Reliance Communications after the company's quarterly results to 'under weight' from 'neutral' and cut target price to Rs 80 from Rs 92.

Third quarter minutes growth for the telecom firm remains poor as subscriber churn in CDMA continues, HSBC said in note. Reliance Communications' plan to leverage CDMA and 3G to drive data-centric growth limits the upside if capex is not increased, HSBC added.

At 10.50 a.m shares were down 2.07% at Rs 92.05.