Reliance Comm shares rise more than 3% on Citi upgrade

Shares in mobile operator Reliance Communications rose more than 3% in early trade on Thursday, after Citigroup upgraded the stock to "buy" from "sell", saying a "good" asset was available at a discount.

The brokerage estimated the company''s replacement cost at Rs120 per share.

"The stock is currently trading below this making it an attractive acquisition candidate, in our view," Citigroup said in a note.

At 9.24am (0354 GMT), Reliance Communications shares were up 2.6% while the main stock index was down 0.2%. The stock rose as much as 3.1% earlier.