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Shares of Cairn India were trading lower by 2% at Rs 226, extending its 9% fall in past one week on the National Stock Exchange (NSE), after the company said it has more than halved its capital expenditure (capex) in 2015-16 because of drop in oil price.
The stock opened at Rs 228 and touched a low of Rs 225, its lowest level since July 2009 on NSE. A combined 1.27 million shares changed hands on the counter till 1126 hours on NSE and BSE.
“With close to $1.1 billion of capex invested in 2014-15, the company is revising the capex for FY16 from the projected $1.2 billion to USD 500 million, while deferring the rest," Cairn India said in a statement on March 4, 2015.
‘In continuation of our communication at the end of third quarter of 2014-15 and in light of the current oil price environment, Cairn is taking a proactive approach to capital allocation and shareholder returns," the company said.
Meanwhile, Brent crude futures fell to around $57 a barrel on Tuesday as the dollar hit multi-year highs and the oil market remained hobbled by oversupply and weak demand, the Reuters report suggest.
The stock opened at Rs 228 and touched a low of Rs 225, its lowest level since July 2009 on NSE. A combined 1.27 million shares changed hands on the counter till 1126 hours on NSE and BSE.
“With close to $1.1 billion of capex invested in 2014-15, the company is revising the capex for FY16 from the projected $1.2 billion to USD 500 million, while deferring the rest," Cairn India said in a statement on March 4, 2015.
‘In continuation of our communication at the end of third quarter of 2014-15 and in light of the current oil price environment, Cairn is taking a proactive approach to capital allocation and shareholder returns," the company said.
Meanwhile, Brent crude futures fell to around $57 a barrel on Tuesday as the dollar hit multi-year highs and the oil market remained hobbled by oversupply and weak demand, the Reuters report suggest.
