Sensex jumps 141 points, Nifty over 10,500 at close, PNB shares down 13%
At close, BSE Sensex jumped 141.52 points or 0.41% to end at 34,297.47,while the wider NSE Nifty 50 was at 10,545.50,44.60 points or 0.42% higher. Punjab National Bank closed 12.89% lower at Rs 127.05 on the National Stock Exchange.business Updated: Feb 15, 2018 15:55 IST
Benchmark Indian equity indices rose on Thursday tracking gains in global peers, but Punjab National Bank slumped for a second consecutive session to its lowest in nearly four months after it unearthed fraudulent transactions of around Rs 11, 400 crore.
At close, BSE Sensex jumped 141.52 points or 0.41% to end at 34,297.47,while the wider NSE Nifty 50 was at 10,545.50,44.60 points or 0.42% higher. Punjab National Bank closed 12.89% lower at Rs 127.05 on the National Stock Exchange. The stock had slumped around 10% in the previous session when the lender said it had detected fraudulent transactions at one of its branches in Mumbai.
Asian stocks gained on Thursday after Wall Street brushed aside strong U.S. inflation data and surged, in a move that also saw the dollar pinned at two-week lows even as Treasury yields jumped in anticipation of more rapid U.S. interest rate hikes.
Although some lenders broadly recovered from losses, analysts warned that other banks could have also been impacted by PNB transactions and this could continue to weigh on the market.
Given the scale of the fraud, the fallout from this case could spread and give rise to fresh questions about lending procedures at Indian lenders, particularly public sector banks, mired in soured debt.
“Concerns around banks after the PNB incident are expected to linger for some time, and it has dampened the sentiment,” said Siddharth Sedani, Vice President - Head Equity Advisory, Anand Rathi.
The Nifty PSU bank index closed 1.10% lower at 3,270.55 on Thursday, after falling nearly five percent in the previous session, following the central bank’s announcement of tough rules for loan restructuring.
First Published: Feb 15, 2018 09:53 IST