Jewellery stocks surge as jewellers end 18-day strike

NEW DELHI: Shares of jewellery makers climbed up to 7 per cent in Monday's trade amid reports that jewellers nationwide have resumed work after an 18-day strike that is expected to have caused Rs 18,000 crore loss to the jewellery sector, with some estimates pegging the revenue loss to the government at Rs 2,000 crore.

Shares of Gitanjali Gems closed higher by 7.10 per cent. Shree Ganesh Jewellery, Thangamayil Jewellery, PC Jeweller and Rajesh Exports advanced 4.53 per cent, 4.41 per cent, 3.17 per cent and 3.13 per cent, respectively. Titan rose 1.36 per cent to Rs 342.30. Tribhovandas Bhimji Zaveri added 1.89 per cent to Rs 51.30.

The Gems and Jewellery Export Promotion Council ( GJEPC) in a release said the 18-day stir caused losses of Rs 60,000-70,000 crore to the industry. An ET report pegged the losses at Rs 18,000 crore. A three-member committee has been set up to look into issue. The committee would submit its report to the government within two months, a PTI report said.

Major jewellery associations, including India Bullion and Jewellers Association ( IBJA), Gems and Jewellery Export Promotion Council and GJF took the decision to end the strike after they met Finance Minister Arun Jaitley on Saturday over the 1 per cent excise duty on jewellery proposed in the Union Budget.

The Budget had imposed a 1 per cent excise duty without input tax credit and 12.5 per cent with input tax credit on articles of jewellery. The government had subsequently announced measures to ensure that there is no harassment of trade because of the levy.