Morgan Stanley has downgraded India's Jindal Steel and Power to equal weight from overweight and reduced target price to INR 535 from INR 650 citing project delays and falling return on equity.

Morgan Stanley in a note said that "We expect delays on the 1,350 MW power project and steel project in the next 3 to 4 quarters, disappointing the street.”

The bank said that medium-term earnings drivers are dissipating for the company from both the power and steel divisions.

(Sourced from Reuters)