Jewellery stocks fall after PNB fraud, Gitanjali Gems shares tank over 18%

New Delhi: Shares of Gitanjali Gems Ltd plunged up to 19% in morning trade after the company came under scanner of various investigating agencies following the Punjab National Bank’s (PNB) declaration of nearly Rs11,400-crore fraud.

The stock opened on a bearish note at Rs48, then lost further ground to touch a low of Rs47.50 on BSE, down 18.94% over its previous closing price. Similar movement was seen on the NSE as well, where the stock tanked 18.73% to a low of Rs47.50.

Meanwhile, some of other jewellery stocks also witnessed similar fate with PC Jeweller slumping 19.50% to Rs303.00, Tribhovandas Bhimji Zaveri 4.32% to Rs110.60, and Thangamayil Jewellery 2% to Rs558.55 on BSE. Rajesh Exports shares fell 1.34% to a low of Rs808.70 on BSE.

PNB on Wednesday disclosed that it has detected some fraudulent transactions with financial implication of $1.77 billion 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 on Wednesday.livemint

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