Cairn India, ONGC Shares Rise On Nod For Vedanta Deal

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>Shares in Cairn India rose more than 5 percent in Mumbai trade, a day after the cabinet gave conditional clearance to miner Vedanta Resources to buy controlling stake in the firm.<br><br>At 12:11 p.m. (0641 GMT), Cairn India shares were up 4.1 per cent to Rs 324.80, but had risen as high as Rs 327.85 in early trade.<br><br>"It has been under pressure because of uncertainty over the deal. It seems to be adjusting for the rise in crude prices since, and the likely faster development of its fields," an oil &amp; gas analyst at a Mumbai brokerage, who declined to be named, said.<br><br>On Thursday, India approved the deal valued at around $6 billion, but said Cairn would have to share royalty and cess burden with partner Oil and Natural Gas Corp for its key oilfields in western India.<br><br>Shares in ONGC, which will gain from sharing of the royalty burden that it had entirely borne so far, rose more than 6 per cent in early trade, but had since eased to Rs 278.40, still up 1.5 per cent in a weak Mumbai market.<br><br>(Reuters)</p>