StanChart downgrades RComm on valuations

Reuters Market Eye - Standard Chartered downgrades Reliance Communications rating to "underperform" from "in-line", saying current valuations "fully reflect the upside from the optic fiber and tower deals."

The Ambani brothers signed a long-expected pact on Friday for their rival telecoms firms to share mobile masts in a contract valued at more than $2 billion over several years -- the biggest deal between them since a reconciliation.

Standard Chartered says the Reliance Jio tower deal may add 17-22 rupees per share to Reliance Comm's valuations, although risks exist from the pace of the ramp-up.

Reliance Comm's shares have gained 50 percent in 2013 so far compared to India's benchmark index which was flat in the same period.

 

(Reporting by Abhishek Vishnoi)