The Reliance Industries stock fell for the second consecutive session in trade today on profit-booking at record high levels. Sentiment became bearish around the stock after global brokerage Jefferies retained its underperform rating on Reliance Industries Ltd (RIL) after the stock's recent record run.
Jefferies has given a target price of Rs 880, a downside of nearly 32% from the current levels. At 10:56 am, the Reliance Industries stock was trading 1.12% or 15 points lower at 1,280 level.
The stock which opened at 1,300 level hit an intra day low of 1,272 level on the BSE. The Reliance Industries stock hit a 52-week high of 1,328.75 on BSE in yesterday's trade but closed lower at 1,294 level on profit-booking.
The stock has been losing for two days and has fallen 3.13% during the same period. It has gained 63.71% during the last one year and has risen 39% since the beginning of this year.
Reliance Industries has a beta of 1.28 with the Sensex.
Here's a look at why Jefferies cut target price of the stock.
28 of 37 brokerages rate the stock "buy" or 'outperform', four "hold" and five "underperform" or "sell", according to analysts' recommendations tracked by Reuters.
Reliance Industries reported its highest ever quarterly net profit for the quarter ending June 2018 as bumper earnings from the retail business, improved profitability of telecom arm and near doubling of earnings from petrochemical business offset lower margins from oil refining business.
Consolidated net profit of Rs 9,459 crore, or Rs 16 per share, in April-June, was 17.9 per cent higher than Rs 8,021 crore, or Rs 13.5 a share, in the same period of previous fiscal, the oil-to-telecom conglomerate said in a statement. Revenue was up 56.5 per cent at Rs 141,699 crore.