Jewellery scrips in demand after hike in import duty of gold

MUMBAI: Shares of jewellery makers today ended the day with up to 4.5 per cent gain after the government increased import duty on gold and silver to 15 per cent from 10 per cent to protect the domestic industry.

PC Jeweller's stock settled 4.43 per cent higher at Rs 90.70, while Tribhovandas Bhimji Zaveri shares were up by 2.90 per cent at Rs 138.30 on the BSE.

Among others, Shree Ganesh Jewellery House rose by 0.77 per cent, while Titan Industries scrip was up 0.45 per cent.

These stocks had rallied up to 7 per cent in morning trade.

However, shares of Gitanjali Gems and Rajesh Exports fell on profit-booking, down 1.47 per cent and 1.10 per cent, respectively.

"To protect the interests of small artisans, the customs duty on articles of jewellery and of goldsmiths' or silversmiths' wares and parts thereof is being increased from 10 per cent to 15 per cent," an official statement had said yesterday.

It said an import duty differential between jewellery and the primary metal is needed to protect millions of artisans who depend on the labour-intensive industry after the duty on gold was increased in stages to 10 per cent on August 13.

Gold jewellery imported during 2012-13 stood at USD 5.04 billion. In the April-June quarter of the current financial year, it was USD 112 million.