New Delhi, June 10 -- Grasim Industries, a key player in the cement sector, saw its shares rally nearly 5 percent on June 10 after global brokerage Morgan Stanley upgraded the stock rating to 'Overweight' from 'Equal-weight' and raised its target price to Rs.3,500 from the earlier Rs.2,975. The revised target implies an upside of over 34 percent from current levels. The Aditya Birla Group company was also named a "top pick in coverage" by the brokerage, with analysts bullish on both its core and emerging businesses.

Morgan Stanley's optimism stemmed from Grasim's better-than-expected launch of its paints business, which the brokerage believes is now poised for its "next leg of value unlocking." The firm said, "The paints business has far...