Morgan Stanley cut its rating on Reliance Industries to 'underweight' from 'equal-weight', citing lack of near-term triggers, expectations for weaker refining margins and valuation.
The investment bank 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.
Morgan Stanley cut its price target on the stock to 703 rupees from 742 rupees. Reliance shares were down 1.2 percent at 847.20 rupees as of 9:36 a.m.
