GAIL (India) fell 2.11% to Rs 344 at 12:09 IST on BSE on profit booking after the stock rose 8.04% in the preceding five trading sessions to Rs 351.40 on 24 October 2013, from a recent low of Rs 325.25 on 17 October 2013.
Meanwhile, the BSE Sensex was down 50.75 points, or 0.24%, to 20,674.68.
On BSE, 28,000 shares were traded in the counter compared with average volume of 88,987 shares in the past one quarter.
The stock hit a high of Rs 349.35 and a low of Rs 344 so far during the day. The stock hit a 52-week high of Rs 395 on 18 January 2013. The stock hit a 52-week low of Rs 273 on 28 August 2013.
The stock had outperformed the market over the past one month till 24 October 2013, rising 4.37% compared with the Sensex's 4.04% rise. The scrip had also outperformed the market in past one quarter, rising 6.36% as against Sensex's 3.16% rise.
The large-cap gas transmission and marketing company has an equity capital of Rs 1268.48 crore. Face value per share is Rs 10.
More From This Section
The recent rally in GAIL (India) shares was triggered by a media report that the oil ministry has decided to exempt the company from paying any compensation to public sector oil marketing companies (PSU OMCs) for selling diesel, kerosene and cooking gas below market rates, because GAIL does not make windfall profits when international crude oil and gas prices soar.
PSU OMCs -- BPCL, HPCL and Indian Oil Corporation -- suffer revenue loss on domestic sale of diesel, LPG and kerosene at a controlled price (The government decontrolled pricing of petrol in 2010). The government compensates these state-run oil marketing firms for their under-recoveries through oil bonds. The rest of the cost-price gap is borne by three state-run oil and gas firms -- GAIL (India), ONGC and Oil India.
As per the report, GAIL had been demanding exemption from sharing subsidy because it was not an upstream company and unlike them it does not gain from any jump in global oil and gas prices.
GAIL (India) will unveil Q2 results today, 25 October 2013. The company's net profit declined 28.7% to Rs 808.17 crore on 15.9% growth in net sales to Rs 12855.64 crore in Q1 June 2013 over Q1 June 2012.
In terms of the decision of the Government of India to share the under recoveries on LPG with PSU OMCs, the company provided provisional discount of Rs 700 crore in Q1 June 2013, which was equal to the amount provided in Q1 June 2012.
GAIL (India) is India's flagship gas transmission and marketing company with global footprints. The Government of India (GoI) holds 57.34% stake in GAIL (India) (as per the shareholding pattern as on 30 September 2013).
Powered by Capital Market - Live News