Jewellery stocks glitter, rally 20% as RBI eases gold import curbs to boost exports

MUMBAI: The stocks of jewellery makers rallied up to 20% on Thursday after the Reserve Bank of India eased gold import norms. PC Jeweller surged 19.59% to close at Rs123.90 on the BSE. The stock hit its 52-week high of Rs124.30 earlier in the day.

Thangamayil Jewellery gained 19.97% to close at Rs154.40, Tribhovandas Bhimji Zaveri rallied 19.96% to Rs191.75, Gitanjali Gems was up 11.93% at Rs102.30, Rajesh Exports gained 11.10% to close at Rs142.10 and Titan Company climbed 6.55% to close at Rs330.45.

The rally followed RBI’s announcement that select trading houses will now be allowed to procure gold in addition to permitted banks. The central bank also eased some financing rules, allowing banks to give gold loans to jewellers.

Analysts said the move will increase gold supply, improve consumer sentiment and brighten the earnings outlook for jewellery makers. “We expect jewellery stocks to witness consistent re-rating in the coming quarters. We have upgraded Titan and Tribhovandas Bhimji Zaveri to ‘buy’,” said Abhijeet Kundu, analyst at Antique Stock Broking.