Jewellery shares rally as government increases import duty on gold

MUMBAI: Shares of jewellery makers today rose by as much as 7 per cent 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 scrip surged 7 per cent to Rs 93, while shares of Tribhovandas Bhimji Zaveri gained 6 per cent to Rs 142.50 on the BSE.

Shares of Gitanjali Gems climbed 4.1 per cent, while Shree Ganesh Jewellery House stock soared 4 per cent. Titan Industries stock rose by 2.65 per cent.

"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 $ 5.04 billion. In the April-June quarter of the current financial year, it was $ 112 million.