Jewellery stocks in demand
Shares of 10 jewellery makers rose by 2.6% to 19.99% at 9:36 IST on BSE after the Reserve Bank of India eased some restrictions on gold imports that were imposed last year.
Tribhovandas Bhimji Zaveri (up 19.99%), Thangamayil Jewellery (up 19.97%), Winsome Diamonds (up 19.96%), PC Jeweller (up 17.76%), Gitanjali Gems (up 14.17%), Rajesh Exports (up 11.49%), Tara Jewels (up 10.67%), Titan Company (up 10.61%), Shree Ganesh Jewellery House (up 5%) and C Mahendra Exports (up 2.6%), edged higher.
The S&P BSE Sensex was up 71.29 points, or 0.29% at 24,369.31.
The Reserve Bank of India (RBI) on Wednesday, 21 May 2014, allowed large private gold importers, or star and premier trading houses, to import the yellow metal. The new norms come into force with immediate effect.
"Star Trading Houses / Premier Trading Houses (STH/PTH), which are registered as nominated agencies by the Director General of Foreign Trade (DGFT), may now import gold under 20:80 scheme," RBI said in a statement.
Further, it has been decided to permit the nominated banks, to give Gold Metal Loans (GML) to domestic jewellery manufacturers out of the eligible domestic import quota of 80% to the extent of GML outstanding in their books as on 31 March 2013, RBI said.
Last year, RBI had imposed severe restrictions on gold imports in order to check the burgeoning current account deficit and sliding rupee. The central bank had tied imports with exports and prescribed a 20:80 formula. This facility was available to select banks only and other entities were barred from importing the metal.
Under the 80:20 scheme, the government had, on 14 August 2013, allowed nominated agencies to import gold on the condition that 20% of the import would be exported.
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