- Gas imports not to turn cheaper in medium term, show GAIL’s new dealsGAIL plans Rs 2,600-cr tyre rubber plant in Gujarat, to take on RILOil & Gas sector: Likely a good quarter for GAIL, relief for Petronet LNG, okay for Reliance Industries, Cairn IndiaBSE Sensex, NSE Nifty end flat ahead of monthly derivatives expiry
Investors are looking to switch to oil explorer Cairn India from gas utility company GAIL (India) Ltd due to the difference in valuation and rising conflict in Iraq, dealers say. GAIL is currently trading at 11 times of its FY16 earnings while Cairn India is trading at seven times, Thomson Reuters data shows. "One can make a switch to Cairn as short-term firmness in crude oil prices and depreciating rupee are sentimental booster for the stock," said G. Chokkalingam, founder of Equinomics, a research and fund advisory firm. Cairn is up 1.2 percent, while Gail is down 1 percent.