Jewellery stocks lose shine; Titan Ind skids 12% on RBI steps
Mumbai: Jewellery stocks Friday tanked as much as 12 percent, after the RBI prohibited inward shipment of gold coins, medallions and dores without licence and asked importers to make full upfront payment for the shipments.
Shares of Titan Industries settled 11.98 percent lower at Rs 240.60 on the BSE. Intra-day, the scrip had tumbled 14 percent to Rs 235.
Tribhovandas Bhimji Zaveri plummeted 7.64 percent, while PC Jeweller shed 7.21 percent, Thangamayil Jewellery (5.16 percent) and Rajesh Exports (4.38 percent).
Analysts feel that these steps will reduce gold imports going forward.
"We have cut our FY'14 gold import forecasts by 5 percent to USD 34 billion after fresh curbs," said Bank of America Merrill Lynch in a report.
Seeking to reduce the import of gold, the Reserve Bank had on Wednesday prohibited inward shipment of gold coins, medallions and dores without licence.
"From now onwards, import of gold in the form of coins and medallions is prohibited and henceforth all import of gold in any form or purity shall be subject to a licence issued by DGFT prescribing 20-80 scheme," Economic Affairs Secretary Arvind Mayaram had said.
The latest measures are part of the series of steps taken to curb gold import, the single biggest contributor to the widening Current Account Deficit (CAD).
Also importers will be required to make full upfront payment for the shipments.
Customs duty on gold, silver and platinum was hiked to 10 percent on Tuesday.
The BSE benchmark Sensex ended at 18,598.18, nosediving 769.41 points in its biggest fall in over 4 years.