Cairn Energy saw share price fall in early morning trading by 2.1 per cent to 483p, after rising sharply on the back of its multi-billion pound deal with Vedanta.

The deal announced on Monday will see Vedanta acquire a 51-60 per cent stake in Cairn India for a fee of more than £5 billion.

The stock was followed by BP, dropping 0.8 per cent to 406.3p, as the embattled oil giant continues to face a number of challenges related to the Deepwater Horizon spill. Telecomms company Inmarsat, fell 0.7 per cent to 681.5p.

Argos-owner Home Retail Group was the biggest riser, with share price increasing 1.9 per cent to 220.4p. While real estate investment trust Capital Shopping Centres Group saw a rise of 1.7 per cent to 326.5p.

Stronger metal prices saw the share price of Eurasion Natural Resources grow by 1.6 per cent to 945.5p.