Goldman Sachs downgrades Reliance Inds, Cairn; ups ONGC

Goldman Sachs today downgraded India's Reliance Industries and Cairn India to neutral from buy, and raised its rating on Oil & Natural Gas Corp to buy from neutral.

Goldman Sachs on Wednesday downgraded India's Reliance Industries and Cairn India to neutral from buy, and raised its rating on Oil & Natural Gas Corp to buy from neutral.

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It said it is removing Reliance from its Asia Pacific Conviction list and downgrading the stock on concerns about lack of clarity on its sustainable growth drivers, implying limited scope for medium-term earnings surprise.

It downgraded Cairn India as it believed there are more compelling risk-reward elsewhere in the sector.

Goldman upgraded ONGC and added it to its Asia Pacific Conviction Buy list, based on stable to improving oil realizations, improving volume growth and attractive valuations.