Gitanjali tanks 20% for second straight day; PNB hits fresh 52-week low

Gitanjali Gems is locked in lower circuit for the second straight day, down 20% at Rs 37.55, its fresh 52-week low on BSE, after the media report suggested that the Enforcement Directorate (ED) conducted searches and sealed some premises owned by the company and Nirav Modi in related to the Rs 114 billion Punjab National Bank (PNB) fraud.

The ED on Thursday conducted searches in 17 properties linked to billionaire jewellery designer Nirav Modi and his maternal uncle and business partner Mehul Chinubhai Choksi’s firm Gitanjali Gems across India in a case of fraud, and seized diamond, gold, and jewellery worth Rs 51 billion, the Business Standard reported. CLICK HERE TO READ FULL REPORT

The BSE said on Thursday that the Exchange has sought clarification from Gitanjali Gems. The reply is awaited.

In past three trading sessions, the stock of Gitanjali Gems has tanked 40% from Rs 62.85 on February 12, 2017. Till 09:25 am; a combined 5.78 million shares changed hands on the BSE and NSE. There were pending sell orders for 2.9 million shares on both the exchanges.

PNB too hit a fresh 52-week low of Rs 123.50 on BSE in early morning trade, trading 3% lower at Rs 124. The stock plunged 23.5% in past three trading sessions from Rs 162 on Monday.

On Wednesday, PNB — the second largest public sector bank in India — informed the stock exchanges through a regulatory filing that it has detected a $1.8 billion fraud in one of its branches in Mumbai.

In the filing, PNB put the quantum of fradulent transactions at $1,771.69 million (around Rs 114 billion). CLICK HERE TO READ FULL REPORT.

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