Cairn India gains as crude trades near one-week high

Cairn India rose 2.77% to Rs 303.80 at 14:22 IST on BSE as US crude oil futures traded near the highest level in a week after crude inventories in the United States dropped to the lowest level since January.

Meanwhile, the S&P BSE Sensex was up 93.35 points or 0.47% at 20,042.08.

On BSE, 97,000 shares were traded in the counter as against average daily volume of 1.67 lakh shares in the past one quarter.

The stock hit a high of Rs 305.40 and a low of Rs 296 so far during the day. The stock had hit a 52-week high of Rs 365.90 on 17 September 2012. The stock had hit a 52-week low of Rs 267.90 on 28 March 2013.

The stock had underperformed the market over the past one month till 17 July 2013, gaining 1.69% compared with the Sensex's 3.22% rise. The scrip had also underperformed the market in past one quarter, advancing 2.25% as against Sensex's 6.5% rise.

The large-cap company has equity capital of Rs 1910.32 crore. Face value per share is Rs 10.

US crude oil futures for August 2013 delivery were down 21 cents a barrel at $106.27 a barrel in the electronic trading today, 18 July 2013. The contract had gained 48 cents a barrel or 0.45% to settle at $106.48 a barrel on the New York Mercantile Exchange on Wednesday, 17 July 2013, its highest closing level since 10 July 2013. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms like Cairn India.

US crude stockpiles fell by 6.9 million barrels to 367 million in the week ended 12 July 2013, according to the data released by the Energy Information Administration (EIA) unit of the US Department of Energy on Wednesday. Supplies shrank for a third week, the longest run of declines this year.

United States is the world's biggest crude oil consumer.

Cairn India's consolidated net profit rose 17.3% to Rs 2563.60 crore on 19.5% growth in net sales to Rs 4363.36 crore in Q4 March 2013 over Q4 March 2012. The company unveils Q1 June 2013 results on 24 July 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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