Stocks Radar: Gitanjali Gems, Allahabad Bank, Prakash Industries
Indian equity benchmarks gained for the third time this week following the gains in global equities. Volume in Asian markets as a whole was muted with several major markets closed for the Lunar New Year holiday.
The S&P BSE Sensex Index and NSE Nifty rose as much as 0.6 percent in early trade to 34,508 and 10,613 points respectively. They have since come off highs with both benchmarks trading with gains of 0.2 percent.
The market breadth was initially tilted in favour of buyers, but later evened out. An hour after market open 10 out of 19 sector gauges on the BSE were trading higher.
Here Are The Stocks Moving The Market This Morning
Allahabad Bank Slumps On Alleged Exposure In PNB Fraud Case
The fraud at Punjab National Bank that came to light on Wednesday continued to plague a clutch of scrips. Shares of Allahabad Bank dropped as much as 3.4 percent to Rs 53 after Bloomberg reported that the bank has an exposure of close to Rs 4,000 crore in terms of loans given in lieu of letters of undertaking issued by PNB.
PNB, on Wednesday, had informed exchanges that it detected fraudulent transactions worth $1.77 billion at one of its Mumbai branches. Jeweller and designer, Nirav Modi is allegedly at the center of the scam, BloombergQuint had reported.
The volume in early trade was double the 30-day average, and the stock has declined nearly 25 percent since the beginning of the year.
Gitanjali Gems Locked In Lower Circuit For The Second Day
Shares of the Mumbai-based jeweller fell nearly 20 percent, the most in over 15 months, to Rs 37.5 after its promoter Mehul Choksi’s name surfaced in the PNB fraud case. The stock has declined for the third straight day.
The stock’s trading volume was 11 times the 30-day average, with the relative strength index at 24, indicating that the stock may be oversold.
Gitanjali Gems, for its part, had said in a statement that Choksi did not have any current dealings with the firms named in the first information report that PNB had lodged against Nirav Modi and other jewelers.
The stock has plummeted over 40 percent since the beginning of the year.
Prakash Industries Rises On Fundraising News
Shares of the steel, ferrous alloys manufacturer rose nearly 7 percent to Rs 234.6 after it announced that it plans to raise Rs 234 crore via the issue of convertible equity warrants.
In a notification on the exchanges, the company said it would issue 1.12 crore warrants to promoters at Rs 208 each. Additionally, 12.5 lakh warrants will be issued to shareholders to raise Rs 26 crore, Prakash Industries added.
The stock has gained in three of the last four trading sessions, with the gain so far today being the most in a month. Trading volume is double the 30-day average so far.
Fortis Healthcare Rises On SC Nod For Sale Of Pledged Shares
Shares of the healthcare provider rose as much as 5.3 percent to Rs 151, the most in a week, after the apex court allowed financial institutions to sell pledged shares of Fortis Healthcare.
The Supreme Court said yesterday that the status quo it had imposed on Fortis assets would not apply to the shares of Fortis Healthcare held by Fortis Healthcare Holdings that may have been encumbered on or before its orders on Aug. 11 and Aug. 31 last year, Bloomberg reported.
Trading volume was 8.8 times its 30-day average, and the stock’s consensus price target is 41 percent higher than current price.