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Housing loan scam rocks BSE for second day

business Updated: Nov 26, 2010 03:08 IST
HT Correspondent
HT Correspondent
Hindustan Times
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The Bombay Stock Exchange (BSE) benchmark Sensex remained volatile on Thursday as the bank loan scam rocked the stock markets.

On a day when the whole of Asia and Europe saw their market indices rise, the Sensex remained an exception lost 141.7 points or 0.7% to close the day at 19,318.2 — its lowest in over 10 weeks.

The Nifty at the National Stock Exchange fell by 66 points to close at 5,799.8.

Companies in the real estate and capital goods sector pulled the Sensex down. JP Associates, DLF and L&T were the prominent losers in the Sensex 30 companies, with their share prices falling 5.2%, 4.1% and 3.5% respectively.

"While CBI has not yet named a real estate company in the scam, the markets are jittery about them and in their apprehension they are being cautious and selling," said Divyesh Shah, CEO, Indiabulls Securities.

Several scams have resurfaced in November after the Muhoorat trading on November 5, when the Sensex closed at a high of 21,005, leading to a fall in the markets amidst some global factors like steps to slow down growth in China, conflict between South and North Korea and debt concerns in Europe.

Within the country, the 2G scam, the Karnataka land scam and now the housing loan scam have hit the stock exchanges.

DB Realty and HDIL were among the big losers on the day with 10% and 9.7% losses, pulling down the real estate index. The companies in the BSE real estate index lost a total of R5,659 crore during the day as the index fell by 5.4%.

The share of LIC housing Finance, which lost 18% on Wednesday, lost another 1% on Thursday to close at 1,058.

Punjab National Bank and Bank of India saw erosion of 6.4% and 5.9% respectively to their stock prices.