Moneycontrol Bureau
1:30 pm Buzzing: Shares of Cairn India fell 3.4 percent intraday as the oil major cut its capital expenditure (capex) plan for the next financial year post fall in oil prices.
"With close to USD 1.1 billion of capex invested in FY15, the company is revising the capex for FY16 from the projected USD 1.2 billion to 500 million, while deferring the rest," said the company in its filing to the exchange.
Cairn India has taken a proactive approach to capital allocation and shareholder returns due to sharp fall in oil prices. Brent crude fell to USD 60 a barrel from USD 115 a barrel in June 2014.
The company will be undertaking projects that are economically viable at current oil prices. Additionally, the management focus is on re-engineering projects and re-negotiating contracts to improve project economics.
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The market is succumbing to profit booking as the Sensex is down 139.71 points at 29241.02. The Nifty slips 51.45 points at 8871.20.
HUL is up 2.5 percent while Wipro, Dr Reddy's Labs, ITC and Sun Pharma are top gainers in the Sensex. Among the losers are Hindalco, Coal India, ICICI Bank, L&T and TCS.
Crude oil futures prices rose by 1.85 percent to Rs 3,359 per barrel today as speculators created positions amid a firm trend in Asia. Marketmen said the rise in crude oil futures was largely in tandem with a firming trend in Asian trade, as signs that refineries' strike in the US is weakening, overshadowed a rise in US crude stocks.
Meanwhile, West Texas Intermediate crude prices advanced by 29 cents to USD 51.82, while Brent gained six cents to USD 60.61 a barrel respectively in late morning trade on the New York Mercantile Exchange.
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