GAIL (India) dropped 1.74% to Rs 378.25 after reports suggested that a fresh investigation against the company was ordered by the Competition Commission of India for alleged abuse of dominant position in natural gas supply.
Meanwhile, the S&P Sensex was down 352.30 points or 1.1% at 31,722.48.
On the BSE, 2.3 lakh shares were traded on the counter so far as against the average daily volumes of 2.16 lakh shares in the past one quarter. The stock had hit a high of Rs 385 and a low of Rs 370 so far during the day.
The stock had underperformed the market over the past one month till 17 July 2017, rising 1.88% compared with the Sensex's 3.28% rise. The stock had also underperformed the market over the past one quarter, dropping 2.07% as against the Sensex's 9.05% rise. The scrip had, however, outperformed the market over the past one year, rising 30.92% as against the Sensex's 15.23% rise.
The Competition Commission of India's (CCI) probe is reportedly followed by the complaint by Uttar Pradesh-based glass-bottle manufacturer Mohan Meakin. The company is alleged to have violated Section 4 of the Competition Act that is related to the abuse of dominant market position.
This is the second time in less than a week that the company has come under the lens of the watchdog for alleged unfair business practices, report added.
GAIL (India)'s net profit dropped 68.7% to Rs 260.16 crore on 15.4% rise in net sales to Rs 13452 crore in Q4 March 2017 over Q4 March 2016.
GAIL (India), India's largest natural gas company, is one of the seven Maharatna Public Sector Undertakings (PSUs). Government of India held 54.44% stake in the firm as per the shareholding pattern as on 31 March 2017.
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