Over 2,000 stocks ended in the red as the benchmark Sensex faced a mini-correction on Monday with shares of the PNB hitting lowest since December 2016 in the intraday trades.
Over 2,000 stocks ended in the red as the benchmark Sensex faced a mini-correction on Monday with shares of the PNB hitting lowest since December 2016 in the intraday trades. As many as 2,017 shares ended in negative territory out of the total 2,913 traded scrips while 734 shares advanced in Monday’s dealings. Shares of the second-largest PSU bank by assets Punjab National Bank emerged as the top loser among the group ‘A’ shares of Bombay Stock Exchange settling in down red for the fourth the consecutive day as India’s biggest banking scandal continue to weigh.
Shares of heavyweight companies such as L&T, Tata Steel, ITC, M&M, SBI, Asian Paints, IndusInd Bank, Sun Pharma, Maruti Suzuki, Hindustan Unilever and HDFC Bank contributed heavily to the Sensex losses. Collectively these 11 stocks alone wiped off about 204 points out of the 236-point drop in the index. The benchmark S&P BSE Sensex shed as much as 437 points to a day’s low of 33,573.52 before settling down 236.1 or 0.69% at 33.774.66. A market-wide mini-correction was observed in the Indian equities in the afternoon trades when shares of SBI plunged nearly 6%.
PNB’s fraud hurts share price further
The stock of fraud-hit Punjab National Bank slumped as much as 8.32% to end at a fresh 52-week low of Rs 115.1 while the stock declined 7.36% to a 52-week low of Rs 116.4 on BSE. This was the lowest level of PNB shares since 30 December 2016. The stock of PNB made a low of Rs 113 on 30 December 2016. Shares of Punjab National Bank has been continuously losing their value since after the bank has informed about “unauthorised and fraudulent” transactions amounting to an estimate of Rs 11,400 crore involving fake LOUs between Nirav Modi group companies and PNB. The alleged diamond merchant Nirav Modi is alleged of obtaining buyer’s credit from several Indian lenders such as State Bank of India, Allahabad Bank, and UCO Bank on the basis of unauthorised LOUs (Letter of Undertakings) issued from Punjab National Bank.
Following the blow, the stock of PNB has highly downtrodden in the last four days with the stock plunging nearly 29% eroding about Rs 10,990 crore from the market capitalisation of the bank. As per today’s closing price of Rs 116.4, Punjab National Bank held a market capitalisation of Rs 28,233.84 crore. A massive trading volume has been witnessed in the shares of PNB on Monday, as at the closing of today’s session, more than 14 crore shares exchanged hands on both NSE and BSE with about 13.08 crore shares on NSE alone.