HSBC slashes Reliance to 8216;underweight8217;

HSBC downgrades Reliance Industries to 8216;underweight8217; from 8216;neutral8217; in view of the recent stock run-up in response to its buyback announcement.

Reliance8217;s existing upstream exploration and downstream refinery businesses are under pressure owing to falling gas production and a decrease in downstream margins and the trend is expected to continue in near term,HSBC said in a note.

Gas production for Reliance is expected to fall further for at least another year in absence of any maintenance/workover,the report said.

The bank maintains target price for Reliance at 800 rupees. At 12.16 p.m.,the stock was down 1.17 percent at 838.80 rupees in a strong Mumbai market which was up 1.7 percent.