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Cairn India gains on bargain hunting after crude rebound

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Capital Market
Last Updated : Dec 02 2014 | 12:14 PM IST

Cairn India rose 1.67% to Rs 261.45 at 10:40 IST on BSE on bargain hunting after a rebound in crude oil prices on Monday, 1 December 2014.

Meanwhile, the BSE Sensex was down 106.96 points, or 0.37%, to 28,452.66.

On BSE, so far 1.23 lakh shares were traded in the counter, compared with an average volume of 1.87 lakh shares in the past one quarter.

The stock hit a high of Rs 262.95 and a low of Rs 258.65 so far during the day. The stock hit a 52-week high of Rs 385 on 10 June 2014. The stock hit a 52-week low of Rs 255 on 1 December 2014.

Shares of Cairn India fell 6.29% in the preceding five trading sessions to Rs 257.15 on Monday, 1 December 2014, from a recent high of Rs 274.40 on 24 November 2014.

The stock had underperformed the market over the past one month till 1 December 2014, falling 9.80% compared with 2.49% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 22.22% as against Sensex's 6.30% rise.

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The large-cap company has an equity capital of Rs 1874.83 crore. Face value per share is Rs 10.

Brent crude slipped today, 2 December 2014, giving up some of the gains seen yesterday, 1 December 2014, when prices rallied for the first time in six sessions staging a recovery after touching five-year lows.

Brent crude oil futures Brent for January settlement was off 47 cents a barrel at $72.07 a barrel.

The contract jumped $2.39 a barrel to settle at $72.54 on Monday, 1 December 2014, after earlier falling to an October 2009 low of $67.53.

Gains in crude oil prices would result in higher realizations from crude sales for oil exploration firms such as Cairn India.

Cairn India's consolidated net profit fell 32.7% to Rs 2277.88 crore on 14.4% fall in net sales to Rs 3982.05 crore in Q2 September 2014 over Q2 September 2013.

Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. The company sells its oil to major refineries in India and its gas to both public sector units and private buyers.

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First Published: Dec 02 2014 | 10:37 AM IST

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