Jewellery stocks tank; Titan Industries plunge 13 per cent

NEW DELHI: Most gems & jewellery stocks came under pressure in trade on Wednesday, weighed down by rises in gold import duty and depreciation of rupee against the dollar.

The rise in import duty is likely to weigh on earnings outlook of these companies as well as margins, according to analysts. India is the world's biggest buyer of bullion and the government is seeking to halt a surge in demand.

Continued depreciation of rupee is another factor weighing on gems and jewellery stocks as sustained depreciation in currency against the dollar may dampen the growth of the sector.

Last week, the government increased duty on gold from 6% to 8% to curb its import. This was the second time in six months that the duty was raised. The Reserve Bank extended the restrictions on gold import to other agencies in addition to banks, to keep a check on burgeoning current account deficit.

According to the World Gold Council, India could import as much as 400 tonnes of gold in the first three months of the current financial, a 200% annual increase, raising the chances that the current account deficit could worsen in the new financial year, ET reported.

The 30-share index closed at 19,041.13, down 101 points or 0.53 per cent. It touched a high of 19,143.24 and a low of 18,969.08 in trade today.

The Nifty ended at 5,760.20, down 28.60 points or 0.49 per cent. It touched a high of 5,792.90 and a low of 5,738.60 in trade today.

We have collated list of gems & jewellery stock which came under pressure in trade today:

Company Name	Percentage Return	Closing price as on June 12
Titan Industries	Down 13.32%	Rs 204.90
Shree Ganesh Jewellery	Down 2.9%	Rs 82.05
TBZ	Down 8.72%	Rs 202
Gitanjali Gems	Down 3.1%	Rs 529.95
Rajesh Exports	Down 1.4%	Rs 118.50