Dividend hope lifts Cairn India shares

After rising as much as 1.5 per cent, shares in Cairn India gain 0.1 per cent on hopes the oil explorer would soon announce a dividend payout, and were last.

Analysts say the government's recent approval of a corporate reorganisation at Cairn India is raising hopes for a dividend.

The company's board of directors is set to meet on October 31 to consider the payment of an interim dividend.

Morgan Stanley says Cairn India has net cash of $2.4 billion, or Rs 65 per share, equalling about 20 per cent of its current market capitalisation and nearly equal to its capex guidance over the next two years, leaving “room for the possibility of a higher payout”. Cairn India said on Monday July-September profits tripled to Rs 23.22 billion , just about in line with expectations.