Led by Titan Industries, jewellery stocks tanked as much as 14 per cent on Friday, after the Reserve Bank prohibited inward shipment of gold coins, medallions and dores without licence and said importers will be required to make full upfront payment for the shipments.
Reacting to this, shares of Titan Industries slumped 14 per cent to Rs 235 on the BSE in morning trade.
Similarly, PC Jeweller tanked 5.83 per cent, while Tribhovandas Bhimji Zaveri tumbled 6 per cent.
Among others, Rajesh Exports was down 3.69 per cent and Thangamayil Jewellery fell 1.15 per cent.
Seeking to reduce the import of gold, the Reserve Bank had on Wednesday prohibited inward shipment of gold coins, medallions and dores without licence.
“From now onwards, import of gold in the form of coins and medallions is prohibited and henceforth all import of gold in any form or purity shall be subject to a licence issued by DGFT prescribing 20-80 scheme,” Economic Affairs Secretary Arvind Mayaram had said.
The latest measures are part of the series of steps taken to curb gold import, the single biggest contributor to the widening Current Account Deficit (CAD).
Also importers will be required to make full upfront payment for the shipments.
Customs duty on gold, silver and platinum was hiked to 10 per cent on Tuesday.
Meanwhile, the broader market was weak with the Sensex falling 530.27 points to 18,836.31 in late morning trade.