Reliance Communications plunges 9% after Standard Chartered downgrade

MUMBAI: Shares of Reliance Communications plunged over 9 per cent in trade today after Standard & Chartered downgraded the stock to "underperform" after the recent rally in the stock.

According to the brokerage, the current valuations "fully reflect the upside from the optic fiber and tower deals."

Reliance Communications and Reliance Industries subsidiary, Reliance Jio Infocomm signed a Rs 12,000 crore contract for sharing telecom towers.

Standard Chartered says the Reliance Jio tower deal may add Rs 17-22 per share to Reliance Communications' valuations, although risks exist from the pace of the ramp-up.

At 01:25 p.m.; the stock was at Rs 101, down 9.01 per cent, on the BSE. It touched a high of Rs 109.50 and a low of Rs 100.85 in trade today.