Punjab National Bank scam impacts jewellery stocks, shares fall 18%, Gitanjali Gems plunges 19%
PNB dropped sharply by 8.47 percent following the Rs 11,400 crore scam at one of its Mumbai branches
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.
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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At the clsoing bell, the BSE Sensex was up 209.36 points or 0.40 percent at 52,653.07 while the NSE Nifty50 gained 69.05 points or 0.44 percent to close at 15,778.45
Market Roundup: Sensex, Nifty skid for third day as bank stocks tumble; today's top gainers and losers
After plummeting over 700 points in intra-day trade, the 30-share BSE Sensex clawed back some lost ground to end 135.05 points lower at 52,443.71, while the NSE Nifty slipped 37.05 points to close at 15,709.40
Tata Steel, Bajaj Finserv and SBI were among the top gainers at both the BSE Sensex and NSE Nifty50 whereas Dr Reddy and Axis Bank were among the top losers in both the indices