Morgan Stanley includes Cairn India in its ‘focus’ list

CAIRN INDIA
CMP: RS 261.25
TARGET PRICE: NA
Morgan Stanley has included Cairn India in its ‘focus’ list, saying the stock was a direct play on crude oil prices, which according to the brokerage, are likely to rise. “Cairn India is a direct play on crude oil prices, which our global commodities team believes are likely to rise. Cairn India is a good hedge in our focus list against a sudden spike in oil prices, which can negatively affect the equity market. Cairn has underperformed the market year to date,” said a Morgan Stanley note to client. “Cairn India’s correlation to crude oil prices is among the highest in the region. The company has strong production growth and high reserve potential, and the stock is attractively valued,” the note added.