Jewellery makers fall; India tries to restrict gold supply

Reuters Market Eye - Shares in Titan Industries Ltd fell 10.4 percent on Tuesday after the company said in a statement RBI has clarified that all imports of gold for domestic consumption can be made only with 100 percent cash margin.

The company also said credit of any kind from suppliers or bullion banks for importing gold for domestic use is prohibited.

The measures may not affect demand but are aimed to curb the supply side to protect the current account deficit, dealers said.

India also increased import duty on gold by a third to 8 percent last week while the central bank has acted to force domestic jewellers to buy only on a cash basis among measures announced this month.

 

Among other jewellery makers, Tribhovandas Bhimji Zaveri Ltd fell 9.6 percent and PC Jeweller Ltd ended 6.8 percent lower.

(Reporting by Abhishek Vishnoi)