Easing gold imports positive for jewellery companies: David Pezarkar

In a chat with ET Now, David Pezarkar, CIO-Equities, BOI AXA Investment Managers Pvt Ltd shares his views on jewellery makers.

ET Now: RBI has eased gold imports through select trading houses. Will this materially change the life for some jewellery makers?

David Pezarkar: It is an incremental positive step. We have seen a sharp appreciation of the rupee. The current account deficit also seems to be under control. It makes sense to change all these restrictive measures. It will ease the very nature of the business. Hopefully, this should impact their ROCE by substantial number.

Although it is not a complete removal of all the restrictions, but it is indicating that the RBI is willing to look in that direction. It will be operationally positive for the jewellery companies.