Jewellery stocks lose sheen on likely curbs on gold imports

MUMBAI: Shares of jewellery companies were under pressure today following reports that the government would soon impose some curbs on gold's inward shipment to prevent current account deficit (CAD) from going out of hand.

Tara Jewels stock fell 3.16 per cent, PC Jeweller dipped 2.78 per cent, Shree Ganesh Jewellery House shed 2.49 per cent, Tribhovandas Bhimji Zaveri slipped 2.23 per cent and Gitanjali Gems weakened 0.95 per cent on the BSE.

In the wake of surge in gold imports, the government would soon impose some curbs on its inward shipment to prevent current account deficit (CAD) from going out of hand.

"Things are being worked out by the Finance Ministry and some announcements (restrictions) may come in a day or two," a source said.

Gold imports surged almost four times to $4.17 billion in October from $1.09 billion in the same month a year ago.

"With the surge in gold imports which has been witnessed, it warranted a re-look. Discussions are still going on between the Reserve Bank of India and the Government of India. Once we know what are the discussions, further view will be taken," RBI Deputy Governor S S Mundra had said yesterday in New Delhi.

Worried over surge in gold imports, the government last week held a meeting to discuss ways to curb the rising inward shipment of the precious metal. Gold imports have touched 150 tonnes in October as against 24 tonnes a year ago.