Sensex, Nifty Open Lower As PSU Banks Tumble

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Indian shares opened modestly lower on Monday as worries over the Rs 11,300-crore fraud case at Punjab National Bank continued to keep investors nervous.

The benchmark BSE Sensex was down 125 points or 0.36 percent at 33,886, while the broader Nifty index was down 35 points or 0.34 percent at 10,417.

PNB tumbled 3.5 percent to extend last week's heavy losses as rating agency Crisil put its ratings on watch.

UCO Bank slumped 7.5 percent after the state-run bank said it has $412 million exposure in PNB banking fraud case.

Allahabad Bank lost almost 5 percent after disclosing an exposure of around Rs 2,000 crore by way of Letter of Undertakings issued by Punjab National Bank to Nirav Modi.

Gitanjali Gems plummeted 10 percent on a PTI report that the Enforcement Directorate has conducted search operations at its stores located in shopping malls in connection with the Rs 11,400-crore PNB fraud.

Tata Steel declined 3 percent after it emerged as the op bidder for Bhushan Steel.

Infosys slid half a percent after divesting its entire stake in Onmobile Systems for $2.5 million.

Reliance Industries was little changed after it unveiled plans to set up the country's first integrated digital area in Maharashtra.

DLF dropped 1.5 percent on reports that it plans to sell ready-to-move-in flats worth Rs 15,000 crore over the next 3-4 years.

Religare Enterprises jumped 4 percent on fund raising reports.