Jewellery stocks lose shine on excise duty worries, strike

Jewellery stocks today slumped up to 12 per cent amid weak investor sentiment as jewellers are on a continuous strike demanding withdrawal of the proposed excise duty on non-silver jewellery.
Shares of Rajesh Exports tumbled 11.70 per cent, Tribhovandas Bhimji Zaveri lost 2.71 per cent, PC Jeweller fell by 2.51 per cent, Shree Ganesh Jewellery House (2.51 per cent), Titan Company (1.21 per cent) and Gitanjali Gems (0.93 per cent) on BSE.
Jewellers are on strike since March 2 demanding withdrawal of the proposed excise duty. The strike entered the 15th day today, with gold and jewellery establishments remaining closed across the country.

The gems and jewellery sector has been bleeding following the bandh which has caused a loss of almost Rs 20,000 crore to the industry, Gems and Jewellery Trade Federation (GJF) said.
Jewellers will tomorrow hold a rally at Ram Lila Maidan in the national capital to protest against the Budget proposal to impose 1 per cent excise duty on non-silver jewellery.
Replying to a debate in the Lok Sabha on the general Budget, Finance Minister Arun Jaitley had rejected demand for rolling back the levy, saying the move is in preparation for unveiling of the goods and services tax (GST).

Meanwhile, Rajesh Exports today informed BSE that a meeting of the Board of Directors of the company will be held on March 21, to propose and declare interim dividend on the paid up equity share capital for the financial year 2015-16 and to consider and discuss certain business propositions.