L&T rebounds 4% on heavy volumes

The company said the sanctions imposed by the World Bank is not expected to have material impact on the Company's present or future operations or its profitability or financials.

Larsen and Toubro (L&T) is trading higher by 1.3% at Rs 1,517, bouncing back 4.1% from intra-day low, after the engineering giant clarified that the sanctions imposed by the World Bank 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.

“The company looks forward to the opportunity to participate in future World Bank Projects upon completion of this 6 month period of ineligibility,” L&T said in a statement.

The World Bank has suspended L&T from bidding for World Bank contracts for six months ending September 6, 2013 after it found evidence that an employee of the company had forged documents to win a supply deal five years ago.

The stock opened at Rs 1,460 and hit a low of Rs 1,456 on NSE. As many as a combined 2.32 million shares have already changed hands on the counter till 1208 hours against an average 2.1 million shares changing hands on the counter in past ten trading days on BSE and NSE.