JP Morgan rates Reliance Industries at 'underweight'

JP Morgan's re-initiated coverage of Reliance Industries, India's biggest energy conglomerate, with an "underweight" rating and a price target of Rs 650 citing a lack of earnings growth and high valuations. The investment bank added it had a "negative" outlook on Reliance's refining and petchem businesses, while "sustained" weakness in its downstream business would cause earnings downgrades. Reliance BSE | NSE Price Reliance Ind Click here for Cloud Computing Also Read Related Stories News Now - Airlines may import fuel jointly - Sensex, Nifty slide bank stocks gain on talk of cut in cash reserve ratio by Reserve Bank - Bhagyanagar gears up for tariff order - 4G story: Why Bharti may fail to make waves - RIL may ignore OilMin advice on arbitration - Tata Motors, Aditya Birla, Bharti Airtel most reputed: Nielsen JP Morgan added Reliance's upstream outlook was "cloudy," saying it expected natural gas production to decline in the near-term. Reliance shares have risen 7.3% year to date, heavily under-performing the 13.7% gain in India's 50-share Nifty index. Shares rose 1.8% to end at Rs 743.3 on Thursday