Expect GAIL to be in close range over reduction: Avinnash Gorakssakar, Miintdirect.com

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Miintdirect.com, shares his views on GAIL:

ET Now: What is your call on GAIL?

Avinnash Gorakssakar: At least for this financial year, GAIL do not have to pay any subsidy. If at all the market is looking at complete subsidy, then probably FY'15 would be a year to watch.

Till the time we do not get clarity on whether subsidy sharing completely goes off from GAIL, some sort of reduction could be possible. That is the reason the stock is now in a close range.

The market was looking forward for a statement from the management on the subsidy.

Clearly, the absence of subsidy in the second-half is a good positive that could possibly add around 2 per cent to 3 per cent to the net earnings.