Sensex, Nifty flat; IGL, GAIL shares hit by tariff cuts
Indian shares were flat to higher as banks recovered after recent steep falls, though oil and gas stocks dropped after a directive from a government regulator to cut gas tariffs in New Delhi raised fears that similar actions would follow.
April 10, 2012 / 12:07 IST
Indian shares were flat to higher as banks recovered after recent steep falls, though oil and gas stocks dropped after a directive from a government regulator to cut gas tariffs in New Delhi raised fears that similar actions would follow.
A banking sub-sector lost 2.9% over the previous two trading sessions, hit by a combination of worries about earnings and uncertainty about interest rates ahead of the central bank meeting next week.State Bank of India gained 1.2%, while ICICI Bank advanced 0.4%.However, gas utility stocks dropped after the Petroleum and Natural Gas Regulatory Board directed Indraprastha Gas (IGL) to cut tariffs for certain types of gas in New Delhi in a bid to reduce prices for consumers.That sparked fears about similar directives to other gas companies, traders said."Such a drastic reduction in tariffs for IGL, apart from raising concerns for the company, will also likely raise concerns for possible tariff cuts for networks where tariffs are not yet determined," Nomura said in a note to clients.IGL dropped as much as 46% to Rs 187.70, the lowest since December 2009. Shares were last trading down 30%.Among other gas utilities GAIL India was down 3.1%, Gujarat Gas lost 7%, Petronet LNG declined 4.3%, and Gujarat State Petronet was down 7.9%.
The 50-share Nifty gained 0.2%, while the 30-share BSE Sensex rose 0.1%.
Among other movers
Patni gained 2% after iGate has accepted the Patni delisting offer of Rs 520 a share, higher than current market price of Rs 505.65.
Thomas Cook shot up nearly 9% after a newspaper reported that its parent company has put a price of over Rs 1,700 crore for the 77% stake it holds in the India business.KRBL gained 4.7% on the back of news that Indian basmati rice exporters have resumed direct shipments to Iran after almost a decade. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
