Jewelery firms slips to red after govt proposes 1% excise duty

Shares of firms dealing in jewellery and precious metals went into negative after the government today proposed to impose 1 per cent excise duty on such items.
The government sought to impose an excise duty of 1 per cent without input tax credit or 12 per cent with input tax credit, on articles of jewellery excluding silver other than studded with diamond or some other precious stone with a higher exemption and eligibility limit of Rs 6 crore and Rs 12 crore respectively.
PC Jewellers ended the day at Rs 320.95 per share on BSE, a drop of 1.12 per cent from its previous close. Intra-day it had dropped as much as 8.78 per cent.

While, scrips of Tribhovandas Bhimji Zaveri fell by 1.94 per cent to Rs 48.05, Gitanjali Gems went down by 2.51 per cent to close at Rs 31.10.
Jewellery exporter and retailer Rajesh Exports ended at the same level of Friday, but, intra-day it had plunged nearly 1 per cent. Rajesh exports closed the day at Rs 708.35.
Finance Minister Arun Jaitley today presented the budget for the 2016-17 financial year.