Foreign brokerage Nomura has cut the target price of Reliance Industries (RIL) from the earlier Rs 1,060 to Rs 870, which implies less than eight per cent upside from the current levels.
The downgrade from ‘buy’ to ‘neutral’ is primarily on account of the negative newsflow related to exploration and production (E&P) and the falling refining margins. Incidentally, Nomura's earlier ‘buy’ call was based on the continued strength in refining and E&P upsides. “Given RIL’s underperformance, we do not foresee much downside, but refining weakness is a near-term concern,” says the latest report.
