Cairn India rose 1.68% to Rs 324.25 at 14:02 IST on BSE as US crude oil futures headed for the biggest weekly gain in five months as the US economy posted the fastest growth since the start of 2012 and crude stockpiles shrank.
Meanwhile, the S&P BSE Sensex was up 17.70 points or 0.08% at 20,975.51.
On BSE, 52,000 shares were traded in the counter as against average daily volume of 1.68 lakh shares in the past one quarter.
The stock hit a high of Rs 324.80 and a low of Rs 318 so far during the day.
The stock had underperformed the market over the past one month till 5 December 2013, sliding 0.87% compared with the Sensex's 0.08% fall. The scrip had also underperformed the market in the past one quarter, declining 4.78% as against Sensex's 10.42% surge.
US crude oil futures for January 2014 delivery were down 11 cents a barrel at $97.27 a barrel in the electronic trading today, 6 December 2013. The contract had gained 18 cents a barrel or 0.18% to settle at $97.38 a barrel on the New York Mercantile Exchange on Thursday, 5 December 2013, its highest closing level since 29 October 2013. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms like Cairn India.
United States gross domestic product expanded at a 3.6% annual rate in the third quarter, the Commerce Department said yesterday.
Meanwhile, the US crude inventories declined for the first time in 11 weeks, government data showed this week.
The United States, the world's largest oil consumer, will account for about 21% of global demand this year, according to the International Energy Agency, a Paris-based adviser to developed nations.
Cairn India's consolidated net profit jumped 45.8% to Rs 3385.08 crore on 4.7% growth in net sales to Rs 4649.91 crore in Q2 September 2013 over Q2 September 2012.
The company reported foreign exchange fluctuation gain of Rs 429.16 crore in Q2 September 2013, as against foreign exchange fluctuation loss of Rs 785.81 crore in Q2 September 2012.
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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