Jewellery stocks on Thursday ended with as much as 20 per cent gains after the Reserve Bank eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the metal to boost exports.
Shares of Tribhovandas Bhimji Zaveri shot up by 19.96 per cent to end at Rs 191.75 on the BSE.
PC Jeweller zoomed 19.59 per cent to settle at Rs 123.90 after earlier rising 19.98 per cent to Rs 124.30 —— its 52-week high, while Gitanjali Gems Ltd rallied 11.93 per cent to close the day at Rs 102.30.
Similarly, Rajesh Exports jumped 11.10 per cent, shares of Titan Company rose by 6.55 per cent and Shree Ganesh Jewellery House was up 5 per cent.
The Reserve Bank of India (RBI) in July last year had imposed severe restrictions on gold imports in order to check burgeoning current account deficit and sliding rupee.
The central bank had tied imports with exports and prescribed a 20:80 formula. Under this, an importer has to ensure that at least 20 per cent of every lot of imported gold is exclusively made available for the purpose of exports and the balance for domestic use.
This facility was available to select banks only and other entities were barred from importing the metal.
“Star trading houses/premier trading houses (STH/PTH), which are registered as nominated agencies by the Director General of Foreign Trade (DGFT), may now import gold under 20:80 scheme,” RBI had said in a notification on Wednesday.
The decision to ease the restriction follows representations from jewellers, bullion dealers, banks, and trade bodies.
