Citigroup downgrades Reliance Industries to "neutral" from "buy", but raises its target price to 847 rupees from 818 rupees.
The investment bank says Reliance's valuations "are not compelling enough", while the near-term earnings outlook looks "subdued."
Citigroup says any strong earnings momentum would be contingent on improvements in Reliance's refining operations or a yet-to-be-seen pick-up in petrochemical demand.
Citigroup says could get more positive on the stock at 750 rupees, and prefers Cairn India .