Shares of GAIL (India) hit an over three-month low of Rs 323, down 10 per cent, in intra-day trade on the BSE on the back of heavy volumes. The stock was quoting at its lowest level since February 26, 2019. The trading volumes on the counter jumped over three-fold with a combined 14.7 million shares changing hands on the NSE and BSE till 10:50 am.
Analysts at Antique Stock Broking said, “In addition, the regulator also declared provisional tariff for under-construction Jagdishpur Haldia Bokaro Dhamra Pipeline (JHBDPL). The above tariff orders are effective from 1st Apr’2019. Besides the declaration of tariffs the regulator has proposed to consider HVJ and HVJ-upgradation as ‘integrated’ pipeline system, for the purpose of tariff determination, with one integrated tariff, in contrast to extant practise of considering them separately, with both having different tariffs”.
They also added that the tariff order reveals that against a wider expectation of increase in the tariffs of HVJ system, the revised tariffs on levelized and integrated basis are more or less same as what GAIL has been charging. As a result the blended tariff assumptions for FY20 and FY21, where the brokerage firm modelled for 10 per cent increase over FY19, stand revised downwards to around 4 per cent increment.