New Delhi, Sept. 3 -- Reliance Industries Ltd (RIL) was set to emerge as the largest beneficiary of China's efforts to curb overcapacity across industries, according to a note by Morgan Stanley. The brokerage said RIL's own restructuring efforts and China's focus on "anti-involution" - measures aimed at reducing cutthroat competition and excess capacity - together create a powerful growth opportunity for the conglomerate.

Morgan Stanley retained its overweight rating on Reliance and raised its 12-month price target to Rs.1,701 from Rs.1,602, signalling a potential upside of 24.4 percent from Tuesday's close. The brokerage highlighted that the market was assigning "near zero value" to the company's new energy and artificial intelligence (...