Shares of jewellery companies are trading lower by up to 2.5% on concerns that the Reserve Bank of India (RBI) may increase the restrictions on gold imports.
Titan Company has shed 1%, Tribhovandas Bhimji Zaveri is down 2.3%, Shree Ganesh Jewellery House has slipped 1.5% and Tara jewels has dipped 1%. However, shares of Gitanjali gems are trading with marginal losses.
On Monday, RBI deputy governor S.S. Mundra said policymakers are concerned that higher gold imports will worsen the trade deficit, after data showed India's gold imports in October surged nearly four-fold to $4.18 billion since previous year.
India’s gold import bill for the month of October 2014 has shot up to $4.178 billion, up 280% following huge demand. As per data announced by the ministry of commerce, silver imports have also shot up 136% to $686 million.
These import bills are the highest since May 2013. Apart from marriage and festival-related demand, imports are also rising due to lower prices of both precious commodities.
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