RIL down 3% on brokerage downgrade

Morgan Stanley cut its rating to 'underweight' from 'equal-weight' due to lack of near-term triggers, expectations of weaker refining margins and valuation

Reliance Industries (RIL) is trading lower by almost 3% at Rs 835 after Morgan Stanley cut its rating on the company to 'underweight' from 'equal-weight' due to lack of near-term triggers, expectations for weaker refining margins and valuation.

“Morgan Stanley 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,” the Reuters report suggests.

The stock opened at Rs 855 and hit a low of Rs 834 on the NSE. A combined 1.55 million shares have changed hands on the counter till noon deals on both the exchanges.