Hope for dividends lifts Cairn India shares

After rising as much as 1.5 percent, shares in Cairn India gain 0.1 percent on hopes the oil explorer will soon announce a dividend payout.

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 65 rupees per share, equalling about 20 percent 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 23.22 billion rupees, just about in line with expectations.