MUMBAI IDFC cut its ratings on Reliance Industries(RELI.NS) to 'neutral' from 'outperform', citing valuation concerns after a recent rally in shares of the energy conglomerate.
The brokerage said Reliance's current share prices are already factoring in "healthy" gross refining margins, better petrochemicals spreads and a rise in exploration and production volumes.
Reliance on Friday posted its first profit increase after four quarters of declining returns, buoyed by improving margins in its core oil refining business.
Reliance shares were up 3.5 percent at 932.3 rupees as of 10:49 a.m.
(Reporting by Manoj Dharra and Abhishek Vishnoi; Editing by Rafael Nam)
Trending On Reuters
What seemed like a possibility for the Nifty to cross the 8,000 mark just two weeks ago has now turned out to be a far-fetched dream. A 7,950-8,000 range could be used to book partial profits and re-enter closer to 7,750-7,800 for the next couple of weeks. The next big trigger would be the arrival of monsoons, writes Ambareesh Baliga. Read