Morgan Stanley turns more bullish on Reliance’s earnings growth; stock surges 5%

New Delhi: 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.