HSBC downgrades Reliance Industries to 'underweight' from 'neutral' in view of the recent stock run-up in response to its buyback announcement.
Reliance's existing upstream(exploration) and downstream (refinery) businesses are under pressure owing to falling gas production and a decrease in downstream margins and the trend is expected to continue in near term, HSBC said in a note.
Gas production for Reliance is expected to fall further for at least another year in absence of any maintenance/workover, the report said. The bank maintains target price for Reliance at Rs 800.
