Reliance Industries (RIL) lost 1.3% to Rs 737.10 after Kotak cut its price target for the stock, citing "conflicting" company signals on the use of cash, "confusing" news from exploration and production, and "continuing weakness" in chemicals and refining margins.
The brokerage cut its sum-of-the-parts target price to Rs 800 from Rs 830, while maintaining its "neutral" stance on RIL, becoming the latest investment house to deliver warnings about the company's earnings outlook.
Kotak analyst Sanjeev Prasad further warned of risks from lower recoverable reserves from RIL's KG D6 block, as well as declines in chemical margins for naphtha-based crackers.
RIL shares have been hit hard in March, with the stock down 8.6%, far above the 1.7% fall in the Nifty last month, due to worries about its earnings.
