Cairn India Up On Oil, UBS Upgrade

<?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 of oil explorer Cairn India rose 3.8 per cent to 353.90 rupees, tracking gains in crude oil prices and after UBS upgraded the stock to "buy" from "neutral" and raised its target price to 400 rupees from 375 rupees.<br><br>UBS said Cairn was a good proxy to play the rising crude prices and the weakening rupee, while saying it expected a "healthy" dividend from the unit of U.K.-based explorer Cairn Energy sometime in the next three months.<br><br>Cairn was also "likely" to announce "positive" updates in the next six months about reserves at the Rajasthan block, as well as possibly from its Sri Lanka reserves, the investment bank added.<br><br>Despite a recently proposed hike in oil production taxes from the Indian government, UBS upgraded Cairn's fiscal 2013-14 earnings-per-share by 3-4 per cent.<br><br>Cairn shares dropped 9.5 per cent in March, dragged down by profit worries after the announced cess hike , under-performing a 1.7 per cent fall last month in the broader Nifty index.<br><br>(Reuters)</p>