RIL’s recent underperformance versus Nifty is more macro driven: JP Morgan

Foreign brokerage, JP Morgan has said that RIL’s recent underperformance versus Nifty is more macro driven and likely driven by the overall FII move from India to China as RIL is likely among the largest FII positions.

RIL is trading at the lower end of its recent trading range. “Overall, we still see a healthy earnings environment for RIL, with the O2C and E&P businesses benefitting from China reopening and higher volumes, and this supports our OW thesis,” JP Morgan said.

“We do not see listings of the consumer business this year or any stake sale in the New Energy business. Progress on JFS and improvement in Petrochem spreads should be near term catalysts,” the report said.