Cairn India drops as crude oil slides

Cairn India lost 2.94% to Rs 280.45 at 11:35 IST on BSE as Brent crude oil futures edged lower for the second day in a row on ample oil supplies.

On BSE, so far 48,815 shares were traded in the counter, compared with an average volume of 1.92 lakh shares in the past one quarter.

The stock hit a high of Rs 292 and a low of Rs 280 so far during the day. The stock hit a 52-week high of Rs 385 on 11 June 2014. The stock hit a 52-week low of Rs 272.65 on 16 October 2014.

The stock had underperformed the market over the past one month till 23 October 2014, falling 8.47% compared with Sensex's 0.28% rise. The scrip had also underperformed the market over the past one quarter, declining 16.42% as against Sensex's 2.69% rise.

The large-cap company has an equity capital of Rs 1874.79 crore. Face value per share is Rs 10.

Brent crude oil futures edged lower for the second day in a row on ample oil supplies. Brent crude for December delivery was off 20 cents at $85.93 a barrel. The contract had lost 70 cents to settle at $86.13 a barrel on Friday, 24 October 2014. Global oil supply remains high despite persistent geopolitical risks in producers such as Iraq and Libya.

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% decline 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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