GAIL India stock price target cut

Bank of America-Merrill Lynch BofA-ML lowered its stock price target on state-run gas utility GAIL India to 419 rupees from 441 after the company posted a 14 percent drop in March quarter profit following a record subsidy it paid to state oil retailers.

The Wall Street bank kept its underperform rating on the stock and said the company was incurring large capital expenditure on its pipeline expansion plan.

On Monday,GAIL said it expects an annual 48 percent jump in its capex for this fiscal,and plans to partly fund it through overseas borrowing.

By 10:45 a.m. 0515 GMT,shares in GAIL India were down 1.07 percent at 430.25 rupees.