Titan falls after hike in import duty of gold

MUMBAI (Reuters) - Shares in Titan Industries Ltd fell as much as 2.2 percent after India increased import duty on gold by a third to 8 percent, which was seen hurting its earnings outlook, dealers said.

India is the world's biggest buyer of bullion and the government is seeking to halt a surge in demand as it threatens to widen a record current account deficit.

The increase was announced a day after the RBI acted to force domestic jewellers to buy only on a cash basis and is also expected to slash imports, which hit 162 tonnes in May, twice the monthly average of 2011 when they reached a record.

 

(Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)