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Extending its decline for the fifth straight session today, shares of Reliance Industries Ltd (RIL) fell by over 1 per cent in morning trade on the bourses amid media reports that the banking major HSBC has downgraded the energy major to “neutral” from “overweight“.
Shares of RIL, slipped by 1.18 per cent to touch a month’s low of Rs 890.10 on BSE, while on NSE, the stock went down by 1.24 per cent to a low of Rs 889.35.
In the past four trading sessions, RIL’s counter has shed over 5 per cent.
Analysts said the bellwether stock has come under further selling pressure after a recent report by the Comptroller and Auditor General (CAG) said the Oil Ministry and its technical arm, the DGH, allegedly favoured RIL by allowing it to double the development cost of its landmark KG-D6 gas field.
However, the company has denied any wrongdoing. According to media reports, HSBC has downgraded RIL to “neutral” from “overweight” and cut the price target to Rs 1,040 from Rs 1,084.
Meanwhile, the Home Ministry has given unconditional approval for UK’s BP to buy a 30 per cent stake in Reliance Industries’ oil and gas blocks, including the showcase KG-D6 gas fields, for $7.2 billion.
RIL has underperformed the benchmark Sensex by 12 per cent over the last three months on concerns of falling gas production from its KG-D6 block, HSBC said, according to media reports.
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