Stock index drops 1% as scandal weighs

Stock index drops 1% as scandal weighs

Mumbai: Shares extended losses to 1% on Friday morning as a probe into a corporate loans bribery scandal sent the shares of companies alleged to be involved tumbling.

At 10:14am, the 30-share BSE index was down 1.11% at 19,108.76 points, with 25 components declining. The 50-share NSE index was down 1% at 5,741.45 points.

The federal Central Bureau of Investigation (CBI) on Wednesday arrested five officials from state-run listed lenders, including the chief executive of LIC Housing Finance, accused of taking bribes to facilitate large corporate loans.

Three senior executives from a listed private company were also arrested on charges of handing out the bribes.

Shares rose 0.3% in early trade, recovering from the previous day’s fall, but sentiment was cautious amid the ongoing bribery probe.

At 9:17 am, the BSE 30-share index Sensex was up 0.32% at 19,380,27 points, with 17 components advancing. Shares in real estate firm DB Realty, which was named by the media for its alleged involvement in the corporate loans bribery case, plunged 10%.

The Central Bureau of Investigation (CBI) on Wednesday arrested five officials from state-run listed lenders, including the chief executive of LIC Housing Finance, accused of taking bribes to facilitate large corporate loans.

Three senior executives from a listed private company were also arrested on charges of handing out the bribes. The NSE 50-share index Nifty was up 0.5% at 5,830.75 points.

Close