Cairn India fell 1.10% to Rs 289 at 11:19 IST on BSE as Brent crude was hovering near a two-year low.
Meanwhile, the BSE Sensex was up 15.01 points, or 0.06%, to 26,286.98.
On BSE, so far 1 lakh shares were traded in the counter, compared with an average volume of 1.83 lakh shares in the past one quarter.
The stock hit a low of Rs 286.20 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 294.60 so far during the day. The stock hit a 52-week high of Rs 385 on 10 June 2014.
The stock had underperformed the market over the past one month till 7 October 2014, falling 11.90% compared with 2.79% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 19.39% as against Sensex's 0.66% rise.
The large-cap company has an equity capital of Rs 1874.75 crore. Face value per share is Rs 10.
Brent crude oil prices dropped sharply after the International Monetary Fund (IMF) cut its outlook for global growth. Brent for November settlement was off $1.21 at $90.90 a barrel. The contract had declined 68 cents to settle at $92.11 a barrel yesterday, 7 October 2014, the lowest settlement price since June 2012.
Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.
On a consolidated basis, Cairn India's net profit fell 65.05% to Rs 1092.90 crore on 10.33% rise in total income from operations (net) to Rs 4482.85 crore in Q1 June 2014 over Q1 June 2013.
The steep fall in the company's bottom line was due to an exceptional deprecation charge of Rs 1627.39 crore with retrospective effect in Q1 June 2014 due to change in method of depreciation from Straight Line method (SLM) to the Unit of Production (UOP) method.
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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