Asian stocks were relatively subdued in the early trade today, with most regional indices hovering around the flat line following the softer lead stateside. Japan’s benchmark Nikkei 225 index was fairly muted, trading higher by 0.06% in the morning. Overnight, the US stocks closed with losses as decline in Walmart weighed on the benchmark indices.

Back home, India share markets opened the day on a firm note. The BSE Sensex is trading higher by 112 points while the NSE Nifty is trading higher by 52 points. The BSE Mid Cap index and BSE Small Cap index both opened the day up by 0.4%.

Barring oil & gas sector, all sectoral indices have opened the day in green with information technology stocks and consumer durables stocks witnessing maximum buying interest. The rupee is trading at 64.53 to the US$.

Gitanjali Gems share price slumped over 10% in the opening trade on the reports that State-run MMTC has decided to terminate its loss-making retail experiment with Gitanjali Gems as unease over the nine-year-old venture mounts, following accusations of Mehul Choksi’s involvement in the over Rs 113-billion fraud that has rocked PNB.

However, most investors in stock markets suffer from short-term memory. The past debacles are quickly forgotten with investors making a beeline for dud stocks, only to burn their fingers repeatedly.

Back in July 2013, after the stock of Gitanjali Gems had slumped on charges of market manipulation by its promoters, it was being lapped up by institutional investors hoping to cash-in the long run.

Gitanjali Gems, the Fall Guy

The stock of Gitanjali Gems has nosedived on several occasions since 2013, eroding market capitalisation by over 80%. Its promoter’s role in aiding Nirav Modi carry out one of the biggest frauds in the banking history has damaged the stock’s position and credibility.

In the news from the IT sector. According to a key projection by Nasscom for 2018-19, software and services exports, the mainstay of the Indian IT industry, will grow 7-9%. This comes in the backdrop of continuing turbulence for the industry.