While there was an uptick in Asian markets, followed by a global recovery in equity markets, Indian equity markets, however, failed to reflect the same sentiments. The exquisite jewellery designer, Nirav Modi came under the CBI watchers radar for the Rs. 11300 crore fraud. Following the steps of Vijay Malya, such cases are questioning investors’ confidence.
Indian Benchmark indices came under selling pressure, with the Sensex falling by more than 500 points and the Nifty trading well below 10,400 levels. PSU Bank index slipped by 2 percent as PSU banks revealed that their total exposure to the PNB Fraud Case has been more than Rs 8,500 crore.
The blame game has just started as PNB claims to have never sanctioned these LOUs and CBI has arrested two PNB employees Gokulnath Shetty and Manoj Kharat regarding the same. Moreover, the Enforcement Directorate (ED), has conducted searches at many locations linked to Nirav Modi and have already seized gold and diamond jewellery worth around Rs. 6000 crores. This incident probes a change in the RBI regulatory policies which would impact the import industry in general.