PNB fraud: Jewellery stocks lose shine; Gitanjali Gems stock crashes 19%

PTI

Gitanjali Gems stock 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.

PC Jeweller tanks 19.5%, Tribhovandas 4.32%, Rajesh Exports 1.34%

New Delhi, Feb 15

Shares of Gitanjali Gems plunged up to 19 per cent in the morning trade as the company has come under the scanner of various investigating agencies following Punjab National Bank’s declaration of nearly Rs 11,400-crore fraud.

The stock 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. Similarly on the NSE, the stock tanked 18.73 per cent to a low of Rs 47.50.

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

Punjab National Bank (PNB) had yesterday disclosed that it has detected some fraudulent transactions with a financial implication of $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 the scanner. The CBI and Enforcement Directorate is looking at their arrangements with various banks and end use of money,” a senior official had said yesterday.

Published on February 15, 2018
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