Equity Alert: Cairn India up 1.8% on crude price rise; gains capped

[K.Karthik Raja]

Equity Alert: Cairn India up 1.8% on crude price rise; gains capped
MUMBAI--12:36PM--Cairn India shares were up 1.8% at 273 rupees due
to a
rise in crude oil prices, dealers said.
NYMEX crude oil futures for August delivery were trading at
$136.15 a
barrel, up 79 cents from Friday.
Dealers, however, said gains were capped at 275 rupees intraday
due to
weakness in broad market.
"Cairn plans 15 exploration/appraisal wells and six seismic in
2008. With
an exploration budget of $100-150 mln per annum, the drilling would
focus in
Rajasthan, KG basin as well as 'important' wells in Ganga basin over
the next
9-12 months," Citigroup Global Markets said in a report.
"Any further exploration success in the new blocks will provide
further
upside over time; undrilled prospects are at estimated at 1 bln
barrels
including the NELP-VI blocks," the brokerage said, which has a 'buy'
rating
on the share with a target of 355 rupees.
So far on NSE, 2.3 mln shares of the company have been traded. Its
June
futures contract was trading at par with spot, with 13% rise in open
interest.
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