L&T shares recover lost ground; M-cap improves by Rs 665 cr
Mumbai: Shares of engineering major Larsen & Toubro today settled for the day in the positive territory after falling as much as three percent on bourses after World Bank imposed a six-month ban on the company.
During the highly volatile trading session, the market capitalisation of the company improved by Rs 665 crore to Rs 92,664 crore from Rs 91,999 crore as on March 8.
The World Bank has barred Larsen & Toubro (L&T) from doing any business with it or the projects funded by it for six months, after finding that an executive of the Indian conglomerate had indulged in a fraud.
After the development which was announced after market hours on Friday, the company's stock today fell 2.73 percent during the day to an intra-day low of Rs 1,455.25 on the BSE.
At the end of today's trade, the stock, however, had recovered the lost ground and was trading at Rs 1,505, higher by 0.65 percent than its previous closing price.
Marketmen said the downslide in the counter earlier during the day was largely a knee-jerk reaction to the World Bank ban. But the counter soon recovered the losses and was trading in the positive zone as the company had said that the ban would not impact on the company's profitability.
"The sanctions imposed by the World Bank for six months ending September 6, 2013, from participating in World Bank funded/executed projects is not expected to have material impact on the company's present or future operations or its profitability or financials," L&T had said on Friday.