Nifty reclaims 10,600 mark, Sensex extends rally; Simbhaoli Sugars jump 16%, PNB hits 52-week low
BSE Sensex advanced by 132.64 points, or 0.38 percent, to 34,578.39 in early, gaining over 132 points to 34,578.39 in early trade today
New Delhi: The benchmark BSE Sensex advanced by 132.64 points, or 0.38 percent, to 34,578.39 in early. It gained over 132 points to 34,578.39 in early trade today, rising for the third straight session today on buying by domestic institutional investors (DIIs) amid strong global cues. The gauge has gained 626.25 points in the previous two sessions.
Investors are also eyeing Q3 GDP data, to be released tomorrow. Market sentiment was bolstered after a Morgan Stanley report said India's economic recovery is expected to have gathered momentum and GDP growth for the December quarter is likely to have accelerated to 7 per cent, broker said.
All sectoral indices were trading in the green, led by gains in oil and gas, consumer durables, auto, banking, power, PSU, metals, FMCG and healthcare counters.The NSE Nifty50 reclaimed the 10,600-mark, by rising 32.65, or 0.30 percent, to 10,615.25.
On a net basis, domestic institutional investors (DIIs) bought shares worth Rs 1,409.45 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 1,119.51 crore yesterday, provisional data released by stock exchanges showed.
Top gainers included Yes Bank, RIL, ONGC, TCS, Dr Reddy's, Asian Paints, M&M, Wipro, HDFC Bank and Coal India, rising up to 1.75 percent.
Overseas, Asian shares were trading higher following gains on Wall Street overnight ahead of Fed chair Jerome Powell's first congressional testimony later in the day.
Japan's Nikkei gained 1.39 per cent, Hong Kong's Hang Seng was up 0.06 per cent, while Shanghai Composite was down 0.97 per cent in early trading today.
The US Dow Jones Industrial Average ended 1.58 per cent higher yesterday on fall in US bond yields.
PNB shares hit new low
Shares of Punjab National Bank (PNB) today slumped as much as 9 percent to touch its 52-week low level in morning trade after the lender said the amount of fraudulent transactions could be as much as Rs 12,700 crore. Gitanjali gems, too, cracked nearly 5 per cent.
Shares of PNB opened weak at Rs 107.80, then cracked 8.75 percent to a 52-week low of Rs 102.10 on the BSE. Similar movement was seen on the National Stock Exchange (NSE) too, where the stock opened at Rs 106.80, then fell to its 52-week low of Rs 102, down 8.92 percent over its previous close.
Amid the multi-agency probe into the PNB scam, the state-run bank yesterday said the amount of fraudulent transactions could be Rs 1,300 crore more than the current estimate of about Rs 11,400 crore.
On February 14, the bank had detected the fraud wherein billionaire jeweller Nirav Modi and associates had allegedly acquired fraudulent letters of undertaking (LoUs) from one of the branches of the PNB for overseas credit from other Indian lenders.
"...We have to inform that quantum of reported unauthorised transactions can increase by $204.25 million (approximately)," the filing said.
At the current exchange rate, the amount comes to around Rs 1,323 crore.
Simbhaoli Sugars jumps 16%
Shares of Simbhaoli Sugars today surged as much as 16 percent in morning trade on bourses after the company said it is committed to clear its outstanding dues.
Faced with a CBI probe for alleged loan fraud, the Simbhaoli Sugars yesterday said it is committed to clearing its outstanding dues to the Oriental Bank of Commerce (OBC) in "due course of time" in consultation with all the lenders.
Following the announcement, shares of the company touched an intra-day high of Rs 16.45, up 15.84 percent over its last close.
On NSE, the stock opened at Rs 14.75, then surged further to a high of Rs 16.20, up 13.68 percent over its previous closing price.
The CBI has registered a case against the company, its chairman Gurmit Singh Mann, deputy MD Gurpal Singh and others in connection with the alleged bank loan fraud of Rs 97.85 crore.
In a late night filing to stock exchanges, the company said it had taken finance from banks, for which it has been regular in repayments but for periodical adverse cycles in sugar industry.
Recently, OBC -- one of the banks in its consortium -- has filed a fraud monitoring report against the company and referred it to investigation agencies, it added.
"In this regard, the company and its management are in process for submitting requisite clarifications and details to the investigating agencies and are fully committed to co-operate with the investigation. The management is committed to clear all of its outstanding dues with the OBC in due course of time, in the joint consultation of all the lenders," the filing said.
Shares of the bank declined over 3 percent today. The stock touched an intra-day low of Rs 91.95 on BSE.
MEA says Centre will continue 'all efforts' to bring fugitives back to India as Mehul Choksi case continues
MEA spokesperson Arindam Bagchi added that India has been seeking extradition of fugitives Vijay Mallya and Nirav Modi from the UK
CBI, MEA approach Dominica HC to be made party to Mehul Choksi case seeking his return to Antigua and Barbuda
If the Dominica High Court admits the two affidavits filed by the CBI and the MEA, it will pave way for noted lawyer Harish Salve to plead India's case in the country
Rights of 'Indian citizen' Mehul Choksi will be respected, court will decide future course, says Dominica PM
Choksi, wanted in a Rs 13,500-crore bank fraud case in India, was held in Dominica after his disappearance from Antigua and Barbuda on 23 May