Cairn India slides along with crude price

Meanwhile, the BSE Sensex was down 139.52 points or 0.72% at 19,314.40.

On BSE, 2.28 lakh shares were traded in the counter as against average daily volume of 4.97 lakh shares in the past one quarter.

The stock hit a high of Rs 320.90 and a low of Rs 309.30 so far during the day. The stock had hit a 52-week low of Rs 296.10 on 4 June 2012. The stock had hit a record high of Rs 400.95 on 22 February 2012.

The stock had underperformed the market over the past one month till 20 December 2012, sliding 3.45% compared with the Sensex's 6.14% rise. The scrip had also underperformed the market in past one quarter, declining 6.17% as against Sensex's 6.02% gain.

 

The large-cap company has equity capital of Rs 1909.90 crore. Face value per share is Rs 10.

Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India. US crude oil futures for February 2013 delivery were down $1.14 at $88.99 a barrel in electronic trading today, 21 December 2012. The contract had gained 15 cents a barrel or 0.16% to settle at $90.13 a barrel on the New York Mercantile Exchange on Thursday, 20 December 2012.

United States is the world's biggest crude oil consumer. US House Republican leaders Thursday evening canceled a vote on a "Plan B" that would have extended tax cuts on incomes below $1 million, saying it didn't have the votes to pass. The failure to attract support among Republican members for their own leadership's bill cast a shadow over prospects for a bipartisan deal. Republican leaders canceled a vote on Speaker John Boehner's budget plan and the chamber said no more votes will be held until after the Christmas holiday. Fewer than two weeks remain to avoid measures known as the fiscal cliff that start in January.

The US fiscal cliff refers to the year-end deadline for the expiration of hundreds of billions of dollars worth of tax cuts and the triggering of $109 billion in across-the-board spending cuts, if the US Congress fails to act. The US Congress created the hazardous deadline of 31 December 2012 in August 2011 when it agreed to a deficit deal as a way out of a deadlock over raising the US debt ceiling. The Congressional Budget Office has estimated the US economy would drop into a recession in the first half of the new year if a deal is not reached.

Cairn India's consolidated net profit jumped 204.3% to Rs 2322.18 crore on 67.5% growth in net sales to Rs 4443.14 crore in Q2 September 2012 over Q2 September 2011.

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 PSU and private buyers.

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