GAIL shares crack 10% on CLSA downgrade

NEW DELHI: Shares of GAIL (India) plunged almost 10 per cent to Rs 323.70 in Thursday's session after global brokerage CLSA downgraded the stock to underperform from buy while cutting the target price to Rs 365 from Rs 420.

CLSA attributed the downgrade to the disappointing tariff revision for key pipeline against the brokerage's expectation of 15 per cent.

As per media reports, the Petroleum & Natural Gas Regulatory Board (PNGRB) approved an integrated tariff rate for two of the key pipelines managed by the State-owned gas utility GAIL.

Even though the new rate is 18 per cent higher than the previous rate, it is still nearly 58 per cent lower than what the gas producer had asked.

Shares of GAIL traded 9.68 per cent down at Rs 323.80 on BSE around 10 am.