PNB Scam: Shares of Mehul Choksi's Gitanjali Gems continue to fall

Shares of Gitanjali Gems continued to fall for the fourth straight session today, plunging 10% as investor sentiment remained muted after the company came under the scanner of various investigating agencies following PNB's Rs 11,400-crore fraud detection.

The stock tumbled 9.99% to Rs 33.80 -- its lower circuit limit -- on BSE.

At NSE, shares of the company plunged 9.87% to hit its lowest trading permissible limit of Rs 33.75.

In four trading sessions, the stock has lost over 46%, wiping out Rs 344 crore from its market valuation.

Among other jewellery stocks, Tribhovandas Bhimji Zaveri (TBZ) was trading lower by 3.80%, Thangamayil Jewellery 1.84% and PC Jeweller 1.42% on BSE.

On February 14, Punjab National Bank (PNB) disclosed that it detected some fraudulent transactions with financial implication of 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.

While billionaire jewellery designer Nirav Modi, the alleged perpetrator of this fraud, is not directly linked to any listed company, his relative and business associate Mehul Choksi's Gitanjali Gems is a listed firm and has been involved in some other cases of suspected market manipulations.