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Feb 15, 2018 07:44 PM IST | Source: Moneycontrol.com

PNB fraud: Jewellery stocks lose shine; Gitanjali Gems tanks 20%, PC Jeweller sinks 5% at close

Punjab National Bank yesterday detected some fraudulent transactions with 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.

Sandip Das @Im_Sandip1

Major jewellers Gitanjali, Ginni and Nakshatra have also come under the scanner of various investigating agencies following PNB 's declaration of Rs 11,400 crore fraud, committed allegedly by Nirav Modi.

Punjab National Bank yesterday detected some fraudulent transactions with 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.

PNB said in a statement that fraudulent transactions took place in one of its branches in Mumbai for the benefit of a few select account holders with their apparent connivance.

Based on these transactions, done by his brother Nishal, wife Ami and Mehul Chinubhai Choksi, other banks appear to have advanced money to these customers abroad.

Following the PNB fraud, jeweller stocks including the likes of PC Jeweller, Vaibhav Global, Tribhovandas, Gitanjali Gems, Lypsa Gems, Kanani Industries and SRS among others were in focus today.

Jewellery mkt cap change

Gitanjali Gems was the worst affected jewellery stock in trade today hitting lower circuit and closing 19.97 percent lower thereby recording a new 52-week low. PC Jeweller closed down over 5 percent while SRS ended 4.2 percent lower and was the other stock to join the 52-week low club. Rajesh Exports was the other underperforming stock which was down 2 percent at close.

In terms of market cap loser, PC Jeweller lost Rs 55.21 crore, Gitanjali Gems 51.60 crore while Tribhovandas lost 10.67 crore in comparison with February 14, 2018.

Investigations in the PNB-Nirav Modi fraud case intensified on Thursday with Enforcement Directorate (ED) conducting searches and sealing some premises owned by Nirav Modi and Gitanjali Gems.

The ED conducted searches at 10 locations which were not raided by the CBI, a source privy to the information in the Rs 11,000-crore fraud case told Moneycontrol. The locations spanned primarily on west India — five in Mumbai, three in Surat and two in Delhi.
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