Gold and Jewellery Stocks Surge Following Customs Duty Cut

Shares of gold and jewellery retailers surged after Finance Minister Nirmala Sitharaman announced a reduction in basic customs duty on gold, silver, and platinum to 6 percent. Senco Gold, Rajesh Exports, and PC Jeweller saw significant gains, while the BSE Sensex benchmark fell by 1.24 percent.

Shares of gold and jewellery retailers surged on Tuesday after Finance Minister Nirmala Sitharaman said the government would reduce the basic customs duty on gold and silver to 6 per cent.

On the BSE, stocks of Senco Gold zoomed 6.16 per cent to trade at Rs 1,000.80 apiece, Rajesh Exports surged 5.49 per cent to Rs 313.90, and PC Jeweller jumped 5 per cent to Rs 74.16 – also hitting its upper circuit limit.

Additionally, shares of Titan Company climbed 3.66 per cent to Rs 3,371.65 per piece, Tribhovandas Bhimhji Zaveri rose 2.79 per cent to Rs 140.20, and Kalyan Jewellers India gained 1.54 per cent to Rs 537.05 on the bourse.

Meanwhile, the 30-share BSE Sensex benchmark dropped by 996.53 points or 1.24 per cent to trade at 79,505.55.

The finance minister also provided for a basic customs duty reduction on platinum to 6.4 per cent and proposed removing the basic customs duty on ferro nickel and blister copper. This reduction has been a long-standing demand of the gems and jewellery industry.