Market Movers: Fraud or no fraud? CanFin Homes tanks 6% despite clarification

NEW DELHI: Shares of CanFin Homes tanked on Monday following a media report that claimed detection of fraud in 37 loan accounts, which may be probed by the Reserve Bank of India. This was despite the company denying the report.

CanFin in a regulatory filing said: The above-mentioned news item is factually incorrect. The company has not received any such information from RBI. Hence, this news item has no material impact on the company.

It added that it had indeed detected ‘fraud’ pertaining to the submission of fake income tax returns in 37 accounts.


The company said it classified it as a bad loan despite the accounts being maintained regularly and provided for the full amount of Rs 3.93 crore.

This disclosure led to heavy selling in the counter. It eventually ended down about 5 per cent at Rs 520.

Earnings boost
BASF India, which makes industrial chemicals, said its profits more than doubled in the March quarter. The company reported a net profit of Rs 150 crore, up from 55.8 crore in the same quarter last year.

The jump in revenue was however much less. Profit apparently shot up because of lower tax outgo during the quarter compared to the corresponding quarter last year.

The board of the company also recommended a final dividend of Rs 6 per equity share.

Following the announcement, the shares of the company surged nearly 9 per cent.

IT stocks
The IT pack was a mixed bag today. It was expected that they will see buying as the rupee declined above Rs 77 per dollar. Export-oriented companies tend to gain from such movements. They did see buying but only big names. Midcap IT pack saw selling.

Also weighed on the sector was the merger between L&T Infotech and Mindtree. Both stocks ended 3-6 per cent lower. On the other hand, HCL Tech, Infosys and L&T Tech Services were among the big gainers.