GAIL (India) gains after LIC hikes stake

GAIL (India) rose 1.17% to Rs 103.90 after Life Insurance Corporation of India (LIC) purchased an additional 2.014% stake in the state-run firm.

LIC purchased 20,37,08,749 shares, or 2.014% stake, of GAIL (India) via open market purchases between 13 February 2019 and 7 July 2020. Following the transaction, LIC's stake in GAIL (India) has increased to 7.019% from 5.004% earlier.

On the technical front, GAIL (India)'s RSI (relative strength index) stood at 57.589. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading in between its 50-day moving average (DMA) placed at Rs 95.09, with will act as a support in the near term and its 200-day moving average (DMA) placed at Rs 110.33, would act as a resistance in the upcoming trade.

 

GAIL (India)'s consolidated net profit surged 215.9% to Rs 4,813.88 crore in Q4 FY20 from Rs 1,523.73 crore in Q4 FY19. Net sales fell 6% year-on-year (Y-o-Y) to Rs 17,922.79 crore during the quarter.

GAIL (India) is an integrated energy company in the hydrocarbon sector and is engaged in gas marketing. As of 31 March 2020, the Government of India held 52.49% stake in the company.

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