Jewellery stocks take a hit after PNB fraud, Gitanjali Gems tanks over 20%

The stock 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, after PNB named Nirav Modi, Gitanjali and two other jewellery brands in fradulent transactions worth about Rs 11,400 crore.

Shares of Gitanjali Gems settled with losses of 20% on Thursday, after the company came under the scanner of various investigating agencies, following Punjab National Bank’s declaration of a nearly Rs 11,400-crore fraud.

Four big jewellers -- Gitanjali, Ginni, Nakshatra and Nirav Modi -- are under the ED’s scanner. (Reuters)

Following the downtrend in the counter, the market capitalisation of the company was eroded by Rs 139.69 crore, to Rs 556 crore, at the end of Thursday’s trading session.

During the day, the stock opened on a bearish note at Rs 48, then lost further ground to touch an intra-day low of Rs 46.90, down 20% over its previous closing price, also its 52-week low level and got stuck there.

Today is the second straight session of decline for the stock. The shares of Gitanjali Gems have tanked 42.20% in the last one month.

Meanwhile, some other jewellery stocks witnessed a similar fate with PC Jeweller ending the day at Rs 356.40, down 5.31%, Tribhovandas Bhimji Zaveri (TBZ) at Rs 112.55 down 2.64%, Thangamayil Jewellery at Rs 541.50, down 5% and Rajesh Exports at Rs 802.50, down 2.10%.

“Four big jewellers -- Gitanjali, Ginni, Nakshatra and Nirav Modi -- are under scanner. The CBI and Enforcement Directorate are looking at their arrangements with various banks and end use of money,” a senior official said on Wednesday.