Morgan Stanley cuts its rating on RComm, Idea Cellular

Mumbai: World leading financial services firm, Morgan Stanley has downgraded its view on India\'s telecom sector to \"in-line\" from \"attractive\", citing increased regulatory risks tied to the spectrum auction, and \"relatively weaker\" 3G outlook.The brokerage has cut its rating on Reliance Communications to \"underweight\" from \"equalweight\", and downgraded its target price to Rs 51 from Rs 109, citing a weaker balance sheet and saying the company faced the highest regulatory risk.Morgan Stanley has also cut Idea Cellular to \"equalweight\" from \"overweight\", while reducing its target price to Rs 87 from Rs 134, citing its smaller balance sheet and a 32 percent outperformance in the last twelve months.Bharti Airtel remains the only \"overweight\"-rated stock in Morgan Stanley\'s telecoms coverage, with a target price of Rs 366, down from Rs 488 earlier.