Jewellery shares tank, Gitanjali Gems down 20%

Tribhovandas Bhimji Zaveri, PC Jeweller and Shree Ganesh Jewellery House are down in the range of 6-10% on BSE.

Shares of  the companies engaged in gems and jewellery business are under pressure on the bourses and trading lower by up to 20% on , on concerns that the Reserve Bank of India's and government initiative to curb gold imports may impact the sectors' growth.

Gitanjali Gems, Tribhovandas Bhimji Zaveri (TBZ), PC Jeweller and Shree Ganesh Jewellery House are down in the range of 6-20% on the Bombay Stock Exchange.

According to PTI reports, due to sluggish demand, gold imports are expected to more than halve to about 150 tonnes in the coming July-September quarter, against the projected 350 tonnes in the current quarter.

Meanwhile, Reliance Capital, on Friday, said it had decided to suspend sale of gold in physical form, including supply of gold coins for sale through India Post, and also as an investment product, across all its businesses and subsidiaries.

Reliance Gold Fund is having an assets under management (AUM) of around Rs 3,000 crore. Reliance Money is the largest distributor of gold coins through its tie-up with India Post.

Among the individual stocks, Gitanjali Gems is locked in lower circuit of 20% at Rs 405 with no buyers have seen on the counter.

The stock opened at Rs 502 and touched a high of Rs 505 on the Bombay Stock Exchange (BSE). A combined 92,999 shares have changed hands on the counter and there are pending sell orders for 594,749 shares on BSE and NSE at 0942 hours.

TBZ has dipped 11% to Rs 174, followed by Shree Ganesh Jewellery House (down 9% to Rs 75), PC Jeweller (8% at Rs 90) and Tara Jewels (5% at Rs 125).