Investors switching to Cairn India from Gail

Tags: Companies
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.

EDITORIAL OF THE DAY

  • Indians being naturally emotional may draw up a work plan to counter it

    Are you going through a bout of depression?

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Disequilibrium: Pawn to king four

Sir Conrad Corfield, heavy hitter of the British Political Department ...

Susan Visvanathan

The problem called JNU

Reservation is a word that some administrators and intellectuals find ...

Rajgopal Nidamboor

That divine mosaic of art and science

Our old, inborn fancy to present complex explanations as a ...