 "Cairn India hits five-year low")
Shares in Cairn India were continue at their southward march, hitting five-year low on the bourses as crude oil fell below $59 a barrel for the first time since May 2009 on Tuesday,
At 1135 hours, the stock was down 2% at Rs 231 on BSE. It hit a low of Rs 229, its lowest level last seen in August 2009.
In past three months, the stock has underperformed the market by falling 29% as compared to less than 1% decline in the benchmark S&P BSE Sensex. S&P Oil and Gas index declined 14.7% during the same period.
International benchmark Brent crude has almost halved since reaching a 2014 high of $115 a barrel in June on ample supply and slowing demand, and a switch in strategy by exporter group Opec to defending market share rather than prices, the Reuters report suggests.
Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.
Last week, a global investment banking and diversified financial services group, Macquarie downgraded the stock to "neutral" from "outperform".
At 1135 hours, the stock was down 2% at Rs 231 on BSE. It hit a low of Rs 229, its lowest level last seen in August 2009.
In past three months, the stock has underperformed the market by falling 29% as compared to less than 1% decline in the benchmark S&P BSE Sensex. S&P Oil and Gas index declined 14.7% during the same period.
International benchmark Brent crude has almost halved since reaching a 2014 high of $115 a barrel in June on ample supply and slowing demand, and a switch in strategy by exporter group Opec to defending market share rather than prices, the Reuters report suggests.
Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.
Last week, a global investment banking and diversified financial services group, Macquarie downgraded the stock to "neutral" from "outperform".