Equity Alert: Cairn India rises 1% on record global crude prices

[K.Karthik Raja]

Equity Alert: Cairn India rises 1% on record global crude prices
MUMBAI--10:40AM--Cairn India was up 1% at 329 rupees in a weak
market
helped by the surge in global crude oil prices, dealers said. Crude
oil for
July delivery was trading at $134.59 a barrel on NYMEX after touching
a record
$135.04 earlier today.
A section of the market believes that hopes of a possible open
offer are
also fuelling gain for the stock.
There is speculation globally that Italy's Eni SpA is closer to a
hostile
bid for Cairn Plc, the parent company of Cairn India, and if Eni
succeeds
then it has to come out with an open offer for Cairn India, dealers
said.
Cairn Energy Plc holds 68.96% in Cairn India.
Dealers expect the stock to touch 350-360 rupees in the next few
sessions, as it is the only momentum stock in the market right now.
So far 2.8 mln shares have been traded on NSE. May futures of the
stock
were at 2-point discount to the spot. (Deepika D. Thapliyal)