Expected rise in PNB fraud depresses equity indices

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Mumbai, Feb 27 (IANS) An expected rise in the estimated quantum of fraud at Punjab National Bank pulled the key indices of the Indian equity market lower during the afternoon trade session on Tuesday.

According to market observers, the key indices made gains on the back of an exponential rise in the US and Asian stock exchanges, however, further disclosure from PNB, subdued investors’ sentiments.

Subsequently, heavy selling pressure was witnessed in banking, capital goods and metals stocks.

Around 12.15 p.m., the barometer 30-scrip Sensitive Index (Sensex) of the BSE traded at 34,354.09 points — down 91.66 points, or 0.27 per cent, from its previous close of 34,445.75 points.

Similarly, the wider Nifty50 of the National Stock Exchange (NSE) edged-lower during the afternoon trade session. It dipped by 32.40 points, or 0.31 per cent, to close at 10,550.20 points.

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In the intra-day trade so far, the S&P BSE Sensex touched a high of 34,610.79 points and a low of 34,328.53 points.

“Benchmark index opened higher, following global cues but gave up all gains after PNB revealed that the amount of fraudulent transactions could be Rs 1,300 crore more than the current estimate of about Rs 11,400 crore,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

On Monday — the previous trade session — both the key indices closed at a new three weeks high levels as positive global cues and forecast of a healthy GDP growth, lifted investors’ sentiments.

The Nifty50 had edged higher by 41.90 points, or 0.40 per cent, to close at 10,532.95 points, while the Sensex closed at 34,269.24 points — up 127.09 points, or 0.37 per cent.

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–IANS

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