Three stocks from sectors such as textile, pharmaceutical and jewellery-maker rose up to 28% in the intraday trades on Monday as the headline indices Sensex and Nifty dropped over 1% each following the global sell-off and LTCG being taxed at 10%. India’s stock markets extended losses on Monday with key equity indices Sensex and Nifty shedding over 1% after Friday’s bloodbath in a market-wide sell-off after Finance Minister Arun Jaitley brought LTCG (Long-Term Capital Gain) on equity over Rs 1 lakh under the tax net at 10%. The stock of the home-grown jewellery maker PC Jeweller was the biggest gainer on Monday, jumped as much as 28.77% to a day’s high of Rs 470.8.
Other two major gainers were Bombay Dyeing and Jubilant Life Sciences which rose up to 20%. The stock of Bombay Dyeing which manufactures premium bedsheets, towels and quilts jumped 20% to the day’s high of Rs 230.15 while the stock of pharma company of Jubilant group Jubilant Life Sciences spiked 13.53% to an all-time high of Rs 993.15 on BSE. The stock of PC Jeweller had been in news since Friday last week after the share of the company fell about 60% over rumours based on its affiliation with Vakrangee which was reportedly under a SEBI probe.
Later on Friday, after PC Jeweller management said that company’s fundamentals are strong and we have no business agreement with Vakrangee and none of our promoters has sold any stake in the firm. Following the development, shares of PC Jeweller recovered most of its losses on Friday only. While, on the other hand, shares of Vakrangee have been on a falling trend since 25 January 2018 and have lost about 53% since then.
Meanwhile today, India’s stock market extended the losses amid the global sell-off led by a downturn in sentiments followed by uncertainties over US job market, the introduction of a tax on LTCG on equity over Rs 1 lakh in India and subdued action ahead of RBI’s repo rate decision. The S&P BSE Sensex tanked 545.95 points to hit a day’s low of 34,520.8 whereas NSE Nifty plunged 173.8 points to hit a day’s low of 10,586.8 on Monday, nearing its one-month low of 10520.1. As at 3:00 pm, Sensex was trading 1.08% or 377.67 at 34,689.08 while Nifty was trading 110 points or 1.02% lower at 10,650.6.