Shares of Punjab National Bank (PNB), Gitanjali Gems and most other companies dealing in diamonds fell for the second consecutive day on Thursday as central agencies intensified their probe into the matter that saw the public-sector lender report fraudulent transactions worth about $1.77 billion on Wednesday.
Shares of PNB lost almost 12% to close at ₹128.35 after touching a 52-week low of ₹125.55 intra-day. On Wednesday, the shares fell almost 10%.
PNB lost ₹8,077 crore in market capitalisation in two trading sessions.
Ironically, trading interest in the stock increased as a total of 1.72 crore shares changed hands on the BSE, significantly higher than the two-week average volume of 17.65 lakh shares.
Sameet Chavan of Angel Broking said the PNB issue was affecting trading environment and having a rub-off effect on its peers as well. Banking majors like HDFC Bank, Kotak Mahindra Bank, Axis Bank and Indusind Bank also lost ground on Thursday.
Meanwhile, the shares of Gitanjali Gems, one of India’s largest branded jewellery retailers, fell 20% to close at 52-week low of ₹46.90. Mehul Choksi, managing director of the company, had also been named in the first information report filed by the Central Bureau of Investigation (CBI).
Ripple effect
The investigation against Nirav Modi and Mr. Choksi had ripple effect, affecting most of the other listed companies that dealt with diamonds and jewellery.
Rajesh Exports lost more than 2% or ₹16.55 to close at ₹.803.20.
PC Jeweller was also down 5.31% or ₹20 to settle the day at ₹356.40. Tribhovandas Bhimji Zaveri, Thangamayil Jewellery, Lypsa Gems andJewellery, Radhika Jeweltech and Vaibhav Global all lost in the range of 2-5% each.
