Mumbai: Shares of Cairn India on Wednesday surged over 4% in morning trade after the company reported decent earnings for the third quarter.
Cairn India reported 12% rise in net profit for the quarter ended 31 December 2011, on back of higher crude oil price.
The announcement which came after market hours on Tuesday, helped the stock touch an early high of Rs 366.80, a jump of 4.27% from its previous closing price on the BSE.
On the National Stock Exchange (NSE), the stock opened on a bullish note and surged further by 4.23% to a high of Rs 366.60.
The shares, however, pared the initial gains and were trading at Rs 357.05, up 1.51% on BSE and at Rs 357.10, higher by 1.54% on NSE.
Meanwhile, the Union Cabinet has given the final approval to London-based mining group Vedanta Resources Plc’s acquisition of a majority stake in Cairn India Ltd for $8.48 billion.
The Cabinet committee on economic affairs headed by Prime Minister Manmohan Singh cleared the deal Tuesday evening.
Market analyst said the uptrend in the counter was a knee jerk reaction to the decent third quarter numbers. Besides the CCEA approval for the Cairn Vedanta deal also helped the stock.