Shares in Reliance Industries gain 0.5 pct.
BNP Paribas upgrades stock to “buy” from “hold”; raises target price to 980 rupees from 911 rupees.
“We see limited downside from the current level as earnings strength should offset uncertainty with regard to the telecom investments,” it says in a report.
Reliance is now past major capex plans and looks poised for earnings growth led by its core segments – BNP.
Strength in refining margins, driven by gasoline, combined with cost benefits to refiners now seem sustainable – BNP.
“We expect GRM at $9/bbl in FY16 and $10.2/bbl for FY17,” it says.