Reliance Industries’ earnings growth is starting to be de-risked, amid improving earnings growth clarity, better refining margins, lower tax rate, and cheaper gas feedstock costs, global brokerage Morgan Stanley said noting that company’s tax liability will reduce by 4 percentage points following cut in the corporate tax rate.
The shares of Reliance Industries surged as much as five per cent after Morgan Stanley said lower taxes and cheaper gas feed costs should de-risk outlook and boost earnings. The stock was trading at Rs 1,285.55, up nearly 4 per cent over the previous close, on the BSE at 1245 hrs after scaling a peak of Rs 1298.55.
