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Cairn India tumbles as oil prices slump

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Capital Market
Last Updated : Nov 28 2014 | 12:16 PM IST

Cairn India lost 3.25% to Rs 263.55 at 11:12 IST on BSE as Brent crude oil prices dropped sharply to its lowest level in four years on Thursday, 27 November 2014.

Meanwhile, the BSE Sensex was up 293.89 points, or 1.03%, to 28,732.80

On BSE, so far 1.41 lakh shares were traded in the counter, compared with an average volume of 1.80 lakh shares in the past one quarter.

The stock hit a high of Rs 266.95 and a low of Rs 262.50 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 258.30 on 14 November 2014.

The stock had underperformed the market over the past one month till 27 November 2014, falling 2.16% compared with 6.3% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 15.84% as against Sensex's 7.07% rise.

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

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Brent crude traded near a four-year low after Organization of Petroleum Exporting Countries (OPEC) decided to keep the cartel's production levels unchanged at a meeting in Vienna yesterday, 27 November 2014. Brent for January settlement shed 8 cents at $72.50 a barrel. The contract dropped $5.17 a barrel to settle at $72.58 yesterday, 27 November 2014, the lowest close since August 2010.

The Organization of Petroleum Exporting Countries (OPEC) will maintain its collective output target at 30 million barrels a day, Saudi Arabia's Oil Minister Ali Al-Naimi said after the group met in Vienna yesterday, 27 November 2014. The 12-member group, which pumps 40% of the world's oil, will convene again on 5 June 2015 in the Austrian capital.

Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like 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: Nov 28 2014 | 11:19 AM IST

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