Bullish on Cairn India: Alok Deshpande, Elara Capital

Alok Deshpande, Research Analyst, Elara Capital in a chat with ET Now gives his views on Cairn India.

ET Now: Cairn India is witnessing some sell off despite good management guidance on reserves as well. What is your call on this one?

Alok Deshpande: We are positive on Cairn India. The reserves upgrade was a positive sign. There are 2 or 3 good reasons why this stock should probably move closer towards 380 or 390 over the next 2 quarters.

1) The reserve base itself has gone up. 2) We do have a bullish view on crude & a weak view on rupee, rupee per barrel is at its all time high. So if you combine these factors, the stock can have a positive bias for the next 2 quarters. So, our target price is somewhere close to 390 on Cairn India.