Barclays downgrades India's Reliance Communications Ltd to "underweight" from "neutral", citing expensive valuations after recent out performance. Reliance Communications remains highly leveraged and has limited ability to increase capex, which would keep its mobile business "significantly weaker than peers", Barclays adds.
Reliance Comm shares had risen 116.5 percent in the last one year as of Monday's close, compared with the broader NSE index's 9 percent gain in the same period. Barclays reiterates Bharti Airtel Ltd as its top pick in the telecom sector with an "overweight" rating and a price target of 393 rupees. Reliance Comm shares were up 1.1 percent and Bharti was down 0.7 percent at 0637