Cairn India to join Nifty from tomorrow

MUMBAI: Oil exploration firm Cairn India is set to join the National Stock Exchange's benchmark index Nifty from tomorrow.

The company, which got listed on the bourses early this year, has witnessed about 35 per cent rise in its share price in the past 11 months, while its market capitalisation has surged to Rs 37,542.02 crore (about 9.5 billion dollars).

It also ranks as the fourth largest oil and gas company in India. The scrip today closed at Rs 211.10, down 0.68 per cent, at the BSE.

Interestingly, its parent firm Cairn Energy Plc, which is listed on the London Stock Exchange, is expected to be included in the benchmark index FTSE-100 based on today's closing at the exchange.

However, Cairn Energy Plc, which has been listed on the UK bourse for the past nine years, has a market cap less than its Indian subsidiary's, with around seven billion dollars (3,896 million pounds). The shares were trading at 25.43 pounds, up 1.48 per cent, at the LSE.

Cairn India joining the NSE depicts the growth of the Indian stock markets and the company's market cap soaring past that of its parent firm is a good enough example, a market analyst said.

Cairn India is replacing HPCL from the 50-share wide- based Nifty index from tomorrow, while Idea Cellular would be included in the index in place of MTNL.