Gems and jewellery stocks are continued under pressure third day in a row falling by up to 17% after the government kept gold import duty unchanged at a record 10% in the budget.
P C Jeweller, Rajesh Exports, Tribhovandas Bhimji Zaveri (TBZ), Gitanjali Gems, Titan Company and Shree Ganesh Jewellery House are down 2-6% on the Bombay Stock Exchange (BSE).
Shares in Titan Company has dipped nearly 4% to Rs 318 after its jewellery unit, Tanishq, said they had closed two gold deposit schemes, under which customers would deposit cash for a certain period and receive an amount of jewellery at the end.
Tanishq said it would close the deposit schemes due to changes to rules governing the sale of deposits under the Companies Act passed last year, according to a notice from the jewellery retailer, the Reuters report suggests.
Since July 9, most of these stocks have fallen between 6-17% compared to 1.7% decline in the benchmark S&P BSE Sensex at 1335 hours.
In order to check rising current account deficit (CAD), the government had raised import duties on the yellow metal to 10% while Reserve Bank of India imposed curbs on import of gold and also laid down various pre-conditions for inward shipments of the precious metal.
As a result of combined efforts, imports of gold have been declining. They fell by 72% to $2.19 billion in May due to restrictions imposed by the government, the PTI report suggests.
Finance Minister Arun Jaitley said the government will consider relaxing curbs on gold import once the fiscal situation becomes more comfortable, added report.
Among the individual stocks, Shree Ganesh Jewellery House has tanked 17% to Rs 32.95 from Rs 39.70 in past three trading sessions. Gitanjali Gems has dipped 15% to Rs 73.65 from Rs 87.20, while PC Jeweller and TBZ are down 13% each to Rs 112 and Rs 161 respectively.
P C Jeweller, Rajesh Exports, Tribhovandas Bhimji Zaveri (TBZ), Gitanjali Gems, Titan Company and Shree Ganesh Jewellery House are down 2-6% on the Bombay Stock Exchange (BSE).
Shares in Titan Company has dipped nearly 4% to Rs 318 after its jewellery unit, Tanishq, said they had closed two gold deposit schemes, under which customers would deposit cash for a certain period and receive an amount of jewellery at the end.
Tanishq said it would close the deposit schemes due to changes to rules governing the sale of deposits under the Companies Act passed last year, according to a notice from the jewellery retailer, the Reuters report suggests.
Since July 9, most of these stocks have fallen between 6-17% compared to 1.7% decline in the benchmark S&P BSE Sensex at 1335 hours.
In order to check rising current account deficit (CAD), the government had raised import duties on the yellow metal to 10% while Reserve Bank of India imposed curbs on import of gold and also laid down various pre-conditions for inward shipments of the precious metal.
As a result of combined efforts, imports of gold have been declining. They fell by 72% to $2.19 billion in May due to restrictions imposed by the government, the PTI report suggests.
Finance Minister Arun Jaitley said the government will consider relaxing curbs on gold import once the fiscal situation becomes more comfortable, added report.
Among the individual stocks, Shree Ganesh Jewellery House has tanked 17% to Rs 32.95 from Rs 39.70 in past three trading sessions. Gitanjali Gems has dipped 15% to Rs 73.65 from Rs 87.20, while PC Jeweller and TBZ are down 13% each to Rs 112 and Rs 161 respectively.
