Cairn India is not looking very good today. After hitting an intra day low of Rs.235.75, it has recouped a bit but remains firmly in the red at Rs.236 levels. Its 52-week low stands at Rs.228.40.

Yesterday the stock had dipped due to falling crude prices but today, the reason is its reduced capex plan for FY16. In a communication with the exchange, issued yesterday, the company has more than halved its capex in 2015-16 due to drop in oil prices. It has stated that it is revising capex for FY16 from the projected $1.2 billion to US$500 million and it has deferred the balance. It has invested close to $1.1 billion of capex in 2014-15.

The company has stated that it will be undertaking projects that are economically viable at current oil prices and the management’s focus would be on re-engineering projects and re-negotiating contracts to improve project economics.