Jewellery scrips in demand after hike in import duty of gold
Mumbai: Shares of jewellery makers Wednesday ended the day with up to 4.5 percent gain after the government increased import duty on gold and silver to 15 percent from 10 percent to protect the domestic industry.
PC Jeweller's stock settled 4.43 percent higher at Rs 90.70, while Tribhovandas Bhimji Zaveri shares were up by 2.90 percent at Rs 138.30 on the BSE.
Among others, Shree Ganesh Jewellery House rose by 0.77 percent, while Titan Industries scrip was up 0.45 percent.
These stocks had rallied up to 7 percent in morning trade.
However, shares of Gitanjali Gems and Rajesh Exports fell on profit-booking, down 1.47 percent and 1.10 percent, respectively.
"To protect the interests of small artisans, the customs duty on articles of jewellery and of goldsmiths' or silversmiths' wares and parts thereof is being increased from 10 percent to 15 percent," an official statement had said yesterday.
It said an import duty differential between jewellery and the primary metal is needed to protect millions of artisans who depend on the labour-intensive industry after the duty on gold was increased in stages to 10 percent on August 13.
Gold jewellery imported during 2012-13 stood at USD 5.04 billion. In the April-June quarter of the current financial year, it was USD 112 million.