Institutions lap up Gail on tariff hike

Mutual funds and select insurance companies lapped up Gail shares on Tuesday after the Petroleum and Natural Gas Regulatory Board (PNGRB) raised tariffs for new pipelines.

Some brokers pushed the stock to their institutional clients citing earnings upgrades on the back of this move. But, sales officials at institutional brokerages said many mutual funds have bought Gail shares for trading gains. The stock, which rose as much as 13.7% to Rs 459.40 during the session, closed at Rs 425.20, up 5.30% on Tuesday.

Contributed by Nishanth Vasudevan & Shailesh Menon.