ICICI Bank Ltd. contributed the most to the decline, falling 1.7 percent. It also said that it had filed a criminal complaint for registering a first information report (FIR) against the accused for the offences of cheating and fraud. "There's a lack of confidence and everyone is groping in the dark to understand the tune of money lost and how it will be recovered". During the day, the company's stock opened on a bearish note, then fell 20 per cent to a low of Rs 37.55, and ended at the same on both BSE as well as the NSE.
Gitanjali Gems shares plunged 19.97% to close at Rs 46.90 on Thursday against the previous session's closing of Rs 58.60 on the BSE. Its market capitalisation has fallen by Rs 300.1 crore.
PNB on Wednesday told the stock exchanges through a regulatory filing that it detected fraudulent transactions at $1,771.69 million (around Rs 11,515 crore) in one of its branches in Mumbai, which is equivalent to eight times the bank's net income of about Rs 1,320 crore ($206 million).
Authorities also interrogated the owner of the shop (Gitanjali Gems are a franchise) Vijay Singh and three other officials of the shop, all of them were said to be cooperating with the investigation.
"It seems that the company was in the process of winding up the store", the official said.
The Securities and Exchange Board of India (Sebi) and stock exchanges have begun analysing the stock market trade details of all entities associated with Modi including Choksi, who has already been under scanner for various cases including a brokerage default incident.
The company belonged to billionaire jewellery designer Nirav Modi's business partner and uncle Mehul Choksi. Gitanjali has previously denied Choksi's involvement in the fraud and said he would take "necessary legal action" to get his name removed from the police case.