PSU Bank index slipped 2 percent as total exposure announced by PSU banks so far has been more than Rs 8,500 crore to PNB fraud case.
Both benchmark indices closed flat for the week, after losing nearly 6 percent in previous two weeks.
Punjab National Bank lost another 2 percent on top of 21 percent fall in previous two consecutive sessions. Gitanjali Gems tanked 19 percent on top of 20 percent correction in previous session.
PNB shares lost another 13 percent after detecting transaction fraud of Rs 11,333 crore in a Mumbai branch.
PNB fell over 11 percent after management gave clarification over transaction fraud worth Rs 11,333 crore.
Voltamp Transformers, NRB Bearings, Kolte-Patil, DLF, IOL Chemicals, Ester, Dilip Buildcon, NMDC, Britannia Industries, Ashok Leyland and Minda Industries gained 1-4 percent whereas JK Tyre and Motherson Sumi lost 2-4 percent post earnings.
FIIs pulled out Rs 814 crore from Indian equity markets on Monday while DIIs invested Rs 1,342 crore in the previous trading session.
All sectoral indices ended in the green barring IT and PSU Bank, as bargain hunting continued.
NALCO, Oil India, Bata India, Sun TV Network, Marico and Amara Raja Batteries rallied 3-7 percent.
The broader markets, however, outperformed frontline indices. The Nifty Midcap ended with 0.2 percent gains. About 1,400 shares advanced against 1,358 declining shares on the BSE.
The Nifty Midcap index extended gains to 0.33 percent.
Strong stock specific moves post earnings, and short covering as well as bargain hunting propelled the market higher today, experts said.
Banking financials, technology stocks and Reliance Industries led the market higher while cement and pharma stocks were strong in trade.
Jet Airways, SpiceJet and InterGlobe Aviation (IndiGo) rose up to 5 percent on the back of this development.
The stock opened lower and slumped further 7.16 per cent to its 52-week low of Rs 116.65 on BSE. At NSE, shares of the company dived 6.77 per cent to hit a one-year low of Rs 117.05.
The stock tumbled 9.99 per cent to Rs 33.80 -- its lower circuit limit -- on BSE. At NSE, shares of the company plunged 9.87 per cent to hit its lowest trading permissible limit of Rs 33.75. In four trading sessions, the stock has lost over 46 per cent, wiping out Rs 344 crore from its market valuation.
UCO Bank, Allahabad Bank, Union Bank of India, State Bank of India, Bank of Baroda and Axis Bank, among others, have fallen 2-11 percent intraday.
The inspection by USFDA was conducted during the period February 12-16, 2018.
UCO Bank in its filing on Saturday said its Hong Kong branch granted loans against letters of credit issued by PNB and was "fully confident" of receiving payment from PNB.
The market breadth was in favour of the declines with 410 stocks advancing in while 1176 stocks declined and 435 remained unchanged. On the other hand, 605 stocks advanced on BSE with 1411 stocks declining and 104 remained unchanged.
A meeting of board of directors is scheduled to be held on February 22 to consider the proposal for buy-back of the fully paid-up equity shares.
Tata Steel emerged as the highest bidder for Bhushan Steel with a surprise bid of Rs 35,000 crore. Stock falls 5 percent intraday.
Watch CNBC-TV18#39;s Ekta Batra give a 360 degree round up on Fortis Healthcare.
Here are a few top buzzing midcap stocks picked by CNBC-TV18#39;s analysts in trade today -- PNB, Jet Airways, and Fortis Healthcare.
While PNB did not name the other lenders, besides Union Bank of India, Allahabad Bank and Axis Bank are said to have offered credit based on letters of undertaking (LOUs) issued by PNB
On February 14, Punjab National Bank (PNB) disclosed that it has detected some fraudulent transactions with financial implication of about Rs 11,346 crore.
The stocks that hit new 52-week high on NSE included KEC International and Polaris Consulting among others while Dena Bank, Punjab National Bank and Syndicate Bank were some of the stocks that hit fresh 52-week low.
The company board at its meeting held on February 15 has allotted 1500 senior, secured non-convertible debentures having face value of Rs 10 lakh each for cash at par to CDC Emerging Markets, on private placement basis.