Shares of Karnataka Bank today tumbled 4% in an overall sluggish stock market following profit-booking amid reports of regulatory scanner.
The scrip of the bank tanked 4.43% to Rs 166.80 during the day on BSE. It finally ended at Rs 168.10, down 3.70% from its previous close. At NSE, the stock settled 4.07% lower at Rs 167.55.
"The scrip fell amid reports of Sebi scanner," CNI Research CMD Kishor Ostwal said.
As per media reports, market regulator Securities and Exchange Board of India (Sebi) is investigating the share price movement of the company.
The stock has surged more than 26% in last month. The scrip, however, had a massive fall of over 14% on December 13.
The recent rally in the stock was driven by speculation of merger talks, market analysts said.
However, Karnataka Bank had denied reports of merger in a regulatory filing to the stock exchanges late last month.
Meanwhile, the BSE benchmark index Sensex today ended at 19,453.92, down 22.08 points.
