Jewellery stocks take a hit after PNB fraud; Gitanjali Gems tanks over 18%

Shares of Gitanjali Gems on Thursday plunged up to 19% in morning trade after the company came under the scanner of various investigating agencies following the Punjab National Bank's declaration of nearly Rs 11,400-crore fraud.

The stock today opened on a bearish note at Rs 48, then lost further ground to touch a low of Rs 47.50, down 18.94% over its previous closing price.

Similar movement was seen on the NSE as well, where the stock tanked 18.73 per cent to a low of Rs 47.50.

Meanwhile, some of the other jewelry stocks also witnessed similar fate with PC Jeweller slumping 19.50 per cent to Rs 303.00, Tribhovandas Bhimji Zaveri (TBZ) 4.32 per cent to Rs 110.60, and Thangamayil Jewellery 2% to 558.55 on BSE. Rajesh Exports fell 1.34% to a low of Rs 808.70 on BSE.

Punjab National Bank (PNB) on Tuesday disclosed that it has detected some fraudulent transactions with the financial implication of USD 1.77 billion (about Rs 11,346 crore) 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.