Jewellery Stocks
Titan, Kalyan Jewellers, Senco Gold fall up to 5% after duty hike on gold
Mumbai/IBNS: Shares of jewellery manufacturers including Titan Company, Kalyan Jewellers and Senco Gold plunged by as much as 5 percent after the Centre raised import duty on gold, media reports said.
Titan extended its losses from the previous session with a fresh 0.6 percent decline in early trade on Wednesday.
Shares of Kalyan Jewellers and Senco Gold fell over 3 percent each during the session.
While Titan and Senco recovered partially from the day’s steepest losses, Senco later extended its decline to around 5 percent.
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, reportedly to discourage gold purchases 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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