Mumbai, Oct. 24: Cairn India shares today surged on stock exchanges on speculations of a possible takeover bid on parent Cairn Energy Plc by BP.

The rumour in the market is that attracted by Cairn’s oil reserves in India, BP may mount the bid.

On the Bombay Stock Exchange, Cairn India shares ended 6.78 per cent higher to finish at Rs 204.75 after hitting an intra-day high of Rs 216.80.

BP has said that it does not comment on market speculation, while the spokesperson for Cairn India could not be reached.

Even before the bid speculation, Cairn India shares had been moving north during the past few sessions on firm crude oil prices. Cairn Energy holds around 69 per cent in Cairn India.

In London, too, the Edinburgh-based Cairn Energy enjoyed a great run, with its shares jumping to a 17-month high.

Cairn India is developing an oil field in Rajasthan with a peak production target of 150,000 barrels per day. The field is expected to produce oil from 2009. In its annual report, the company told its shareholders that it was also looking for oil and gas in other parts of the country.

The company said it was also interested in mergers and acquisitions and would participate in the seventh round of the new exploration and licensing policy.

In addition to Rajasthan, Cairn has interests in 12 exploration blocks in the country.