Shares of Financial Technologies (India) plunged nearly 10 per cent after the Enforcement Directorate arrested its founder Jignesh Shah in connection with the Rs 5,600-crore National Spot Exchange Limited (NSEL) money laundering scam.
After a weak opening, the stock further slumped 8.45 per cent to Rs 83.40 on the BSE.
On the NSE, shares of the company tumbled 9.63 per cent to Rs 82.55.
At the closing trade, the stock was down 6.04 per cent at Rs 85.60 on the BSE. On the NSE, the stock ended lower by 6.95 per cent at Rs 85.
Officials said Shah was arrested yesterday under the provisions of the Prevention of Money Laundering Act (PMLA) as “he was not cooperating in the investigation''.
Reacting to the development, FTIL said in a statement: “We fail to understand why such a coercive step was taken against by the ED when Shah has been fully cooperating with the investigation.”
ONGC, Oil India shares jump
Shares of oil companies rose as a media report said that the government has approved 25 paise hike in kerosene prices per month till April 2017.
The proposed hike would lower government's subsidy burden by Rs 1,000 crore ($148.96 million) this year, according to a media report.
Higher kerosene prices would benefit oil marketing companies as well as upstream companies, the report says.
The S&P BSE Oil & Gas Index was up 1.81 per cent.
Oil and Natural Gas Corp Ltd's shares surged 4.85 per cent, and was the top percentage gainer on the NSE index.
Oil India Ltd jumped 3.38 per cent and Indian Oil Corp Ltd rose 1.2 per cent ($1 = 67.1325 Indian rupees).
At the closing trade, ONGC stock was up 3.01 per cent, Oil India (+1.67%) and IndianOil (+0.47%).
BHEL hits 6-month high
Shares of BHEL hit near 6-month high on report of new power plant deal.
State-owned power equipment maker gained as much as 6.3 per cent to its highest since January 25.
The company shares ended higher by 2.35 per cent at Rs 141.55 on the BSE.
Bangladesh-India Friendship Power Co has signed a deal with BHEL for constructing a super thermal power plant in Bangladesh, according to a media report.
The report says that India's Exim Bank will provide $1.49 billion for the project. The project is scheduled to start generating power in 2019.
The company could not be immediately reached for comment.
The BHEL stock is the top gainer on Nifty infrastructure Index, which is trading almost flat.
BHEL order book stood at Rs 1.11 lakh crore at the end of 2015-16.
Analysts worry that high proportion of slow-moving orders in backlog will keep FY2017 execution/margins in check.
Kwality shares rally
Kwality Ltd gained on $77.43 million capital commitment from KKR.
Dairy food processor Kwality rose as much as 6.1 per cent to Rs 118.35,, its highest since June 6.
The stock ended higher by 3.01 per cent at Rs 114.60 on the BSE.
US-based investment firm KKR & Co. L.P. will fund Kwality with Rs 520 crore ($77.43 million) for the company's expansion.
The funds will also be used for Kwality's debt repayment and capex.
Over 2.3 million shares changed hands, more than twice its 30-day average.
The stock has an estimated PE of 9.48, short of the sector average of 21.65 ($1 = 67.1550 Indian rupees).