Reliance Ind hit by more analyst cuts

Reliance Industries lost 1.3 per cent to 737.10 rupees after Kotak cut its price target for the stock,citing conflicting company signals on the use of cash,confusing news from exploration and production,and continuing weakness in chemicals and refining margins.

The brokerage cut its sum-of-the-parts target price to 800 rupees from 830 rupees,while maintaining its neutral stance on Reliance,becoming the latest investment house to deliver warnings about the company8217;s earnings outlook. and

Kotak analyst Sanjeev Prasad further warned of risks from lower recoverable reserves from Reliance8217;s KG D6 block,as well as declines in chemical margins for naphtha-based crackers.

Reliance shares have been hit hard in March,with the stock down 8.6 per cent,far above the 1.7 per cent fall in the Nifty index last month,due to worries about its earnings.