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Compared to the stellar run in 2017, the market has managed to give out subdued returns in 2018 so far. In the first half of this year, indices have gained just 1-4 percent. To put things in perspective, these had increased up to 30 percent in the last calendar year.
At the halfway mark, the trends could point to a consolidation move on the markets, with the next trigger being elections as well as earnings a well.
But even in this market, there were several stocks that managed to stay in the limelight and erode investors’ wealth. Moneycontrol takes a look at few stocks that were in the news for all wrong reasons.
The stock of Punjab National Bank (PNB) has come in the centre of the controversy surrounding Punjab National Bank and Gitanjali Gems. Punjab National Bank has eroded wealth of investors by over 56 percent. The latter fell over 94 percent in this year so far.
On February, Punjab National Bank said it has detected a fraud worth USD 1.7 billion perpetrated by Nirav Modi and Mehul Choksi using fake PNB letters of undertaking (LoUs). Both the accused had left India a month before the scam came to light.
Vakrangee, Manpasand Beverages, Atlanta, Fortis Healthcare, and Dilip Buildcon:
The year so far has also been dominated by issues surrounding governance issues such as auditors quitting. The likes of Vakrangee, Manpasand Beverages, Atlanta, Fortis Healthcare, and Dilip Buildcon saw their shares reacting negatively just as their auditors quit.
Vakrangee’s shares have plummeted over 57 percent, while Manpasand Beverages has taken a hit to the tune of 66.5 percent.
Though the stock has managed to recover, the stock has managed to fall around 11 percent on a year to date basis.
The CBI earlier this year launched a preliminary investigation into Rs 3,250 crore loan ICICI Bank had extended to Videocon in 2012 and the possible role of Kochhar's husband -- Deepak Kochhar.
It is alleged that Videocon chairman Venugopal Dhoot invested Rs 64 crore in Nu Power Renewables, a firm owned by Deepak Kochhar after Videocon secured a loan from a consortium of banks, including ICICI.
Axis Bank’s stock has taken a hit of around 10 percent in this year, but that is largely on the back of a recovery in the stock. This, after the bank announced that Shikha Sharma will not be continuing as the chief after her term ends later this year.
The Reserve Bank of India (RBI) had asked Axis Bank’s board to reconsider the decision to re-appoint Shikha Sharma as its managing director and chief executive officer (CEO) for a fourth term, amid concerns over rising bad loans at the country’s third largest private sector lender, people in the know said.
The move comes against the backdrop of persisting concerns over mounting non-performing assets (NPAs) in the banking system. This was followed by the bank announcing that Shikha Sharma would not be continuing with the bank later this year.
Shares of Vedanta were in the news for wrong reasons as well on the back of widespread protests at its Tuticorin unit.
The copper plant of Anil Agarwal-led Vedanta remains closed following a Tamil Nadu government order issued on May 28 due to acid spillage from its copper smelter unit in Tuticorin.
Sterlite was accused of violating pollution norms and despite repeated legal action, the company has managed to survive.
In a statement, Vedanta Ltd, which controls Sterlite, said the Tamil Nadu government's order was "unfortunate". "Closure of Sterlite Copper plant is an unfortunate development, especially since, we have operated the plant for over 22 years in most transparent and sustainable way, contributing to the Tuticorin and state's socio-economic development. We will study the development and decide on the future course of action," Vedanta said in a statement.
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