Investors switching to Cairn India from GAIL
Reuters Posted online: Friday, Jun 20, 2014 at 0000 hrs
Investors are looking to switch to oil explorer Cairn India from gas utility company GAIL (India) Ltd due to the difference in valuation and rising conflict in Iraq, dealers say. GAIL is currently trading at 11 times of its FY16 earnings while Cairn India is trading at seven times, Thomson Reuters data shows. "One can make a switch to Cairn as short-term firmness in crude oil prices and depreciating rupee are sentimental booster for the stock," said G. Chokkalingam, founder of Equinomics, a research and fund advisory firm. Cairn is up 1.2 percent, while Gail is down 1 percent.