Punjab National Bank scam impacts jewellery stocks, shares fall 18%, Gitanjali Gems plunges 19%

Mumbai:  Gitanjali Gems plunged nearly 19 percent on reports over its involvement in the PNB fraud case in morning trade after the company came under scanner of various investigating agencies following the Punjab National Bank's declaration of nearly Rs 11,400-crore fraud. The stock today opened on a bearish note at Rs 48, then lost further ground to touch a low of Rs 47.50, down 18.94 per cent over its previous closing price.

Similar movement was seen on the NSE as well, where the stock tanked 18.73 percent to a low of Rs 47.50.

Meanwhile, some of other jewellery stocks also witnessed similar fate with PC Jeweller slumping 19.50 percent to Rs 303.00, Tribhovandas Bhimji Zaveri (TBZ) 4.32 percent to Rs 110.60, and Thangamayil Jewellery 2 percent to 558.55 on BSE. Rajesh Exports fell 1.34 percent to a low of Rs 808.70 on BSE.

Punjab National Bank (PNB) yesterday disclosed that it has detected some fraudulent transactions with financial implication of USD 1.77 billion (about Rs 11,346 crore) and the matter has been referred to law enforcement agencies for the recovery.

"Four big jewellers -- Gitanjali, Ginni, Nakshatra and Nirav Modi -- are under scanner. The CBI and Enforcement Directorate is looking at their arrangements with various banks and end use of money," a senior official said yesterday.

Getty Image.

Getty Image.

The BSE benchmark Sensex surged over 167 points, staging a strong recovery in early trade today on firm cues from global markets.

A stronger rupee against the dollar also influenced market sentiment.

The 30-share index was trading higher by 167.12 points, or 0.48 percent, at 34,323.07. The gauge had lost 144.52 points in the previous session.

The NSE Nifty gained 47.45 points, or 0.45 percent, to 10,548.35.

Widespread buying was seen in metal, healthcare and realty counters. Major gainers were Adani ports, HDFC, ICICI Bank, SBI, Dr Reddy's,
Tata Motors, Yes Bank, Reliance Industries and Maruti Suzuki, rising up to 2.17 percent.

Brokers said a firm trend at other Asian markets boosted investor sentiment, following overnight gains on Wall Street as investors shrugged off stronger-than-expected inflation data.

Meanwhile, Hong Kong's Hang Seng was up 1.69 percent and Shanghai Composite Index by rose 0.45 percent in early trade. Japan's Nikkei also gained 1.33 percent. The US Dow Jones Industrial Average ended 1.03 per cent higher yesterday.

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Updated Date: Feb 15, 2018 11:37:03 IST

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