There are some very specific reasons why Morgan Stanley has upgraded Reliance Industries and the highlights are as follows:

· Morgan is of the view that the earnings growth of RIL will get a boost in the coming quarters from better refining margins in its oil refining business. In addition, the earnings of RIL are also likely to be positive impacted by the lower effective rates announced as well as the cheaper gas feedstock prices.

· In fact, Morgan Stanley sees a 4% reduction in the consolidated tax payout of the company that is likely to directly contribute to the company profits.

· MS also believes that the International Maritime Organization has come out with new rules for ships which entail that ships be barred from using fuel with more than 0.5% sulphur content. Since RIL has the most complex refinery, this is likely to benefit them immensely.

· In addition, Morgan also sees positive traction coming from the telecom and retail business as it is now able to enhance market share without giving up on ARPUs.

Overall, it is a long term thumbs-up for RIL and it is a good stock from a medium to long term perspective. However, upticks could be gradual as the stock already has a market cap of $115 billion.