Stocks
Centre’s gold import move triggers stock market drama; jewellery shares tank, lenders jump
Mumbai/IBNS: The Indian stock market advanced on Wednesday in a volatile trading session amid geopolitical tensions linked to the ongoing West Asia conflict, media reports said.
The benchmark BSE Sensex climbed around 300 points, while NIFTY 50 traded near the 23,450 mark in afternoon trade.
Gold loan stocks rally
Shares of gold-focused lenders such as Manappuram Finance, Muthoot Finance and IIFL Finance surged by as much as 11 percent, tracking the rise in gold prices after the Centre increased customs duty on gold imports.
Jewellery stocks under pressure
Meanwhile, shares of jewellery manufacturers including Titan Company, Kalyan Jewellers and Senco Gold fell by up to 5 percent after the government raised import duty on gold.
Centre raises customs duty on gold imports
The central government has increased customs duty on gold, silver, platinum and other jewellery components from 5 percent to 10 percent, amid Prime Minister Narendra Modi’s call for austerity in view of the ongoing West Asia conflict.
The government has also raised the cess on imports from 1 percent to 5 percent with a similar objective.
Modi calls for austerity amid West Asia tensions
Addressing a rally in Hyderabad last Sunday, Modi urged citizens to adopt austerity measures in view of the worsening conflict in West Asia, warning that the global crisis could severely impact India’s economy through rising fuel prices and pressure on foreign exchange reserves.
The Prime Minister appealed to people to avoid unnecessary foreign travel for a year and refrain from purchasing gold during festivals and weddings.
‘Economic patriotism’ call
Stressing the need for “economic patriotism”, Modi said every Indian must contribute towards protecting the country’s financial stability during uncertain global conditions.
He also urged citizens to reduce petrol and diesel consumption, revive work-from-home practices wherever possible, and rely more on public transport.
Modi cautioned that disruptions in global crude oil supply chains due to the ongoing conflict could sharply increase India’s import bill, given the country’s heavy dependence on imported fuel and gold.
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