Reliance Industries falls 3% after Morgan Stanley downgrades rating

At 0939 hours, Reliance Industries was quoting at Rs 1265.90, down 2.58 percent on the BSE

Shares of Reliance Industries fell nearly 3 percent intraday on May 9 after brokerage firm Morgan Stanley downgraded the company to equal-weight, maintaining the target at Rs 1,349 per share.

The brokerage firm expects the earnings growth of the Mukesh Ambani-led company to halve in FY20, after delivering a steady 17 percent compound annual growth rate (CAGR) between FY17 and FY19.

Morgan Stanley said that earnings upswing of the last two fiscal is likely to reverse and the upside appears limited, as the core business of the company drags.

"The rising glut in gas and polyester markets could also slow growth into 2020," added the brokerage.

At 0939 hours, Reliance Industries was quoting at Rs 1265.90, down 2.58 percent on the BSE.

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