| Date: |
22-05-2014 |
| Subject: |
Jewellery stocks glitter, rallies 20% as RBI eases gold import curbs to boost exports |
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NEW DELHI: Jewellery stocks rallied as much as 20 per cent in trade on Thursday, after the Reserve Bank of India ( RBI) eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports.
The recent move by the Central Bank announced late on Wednesday, will lead to supply of gold, according to experts. Reacting to the news, Tribhovandas Bhimji Zaveri Ltd rose as much as 20 per cent, and is now locked in upper circuit at Rs 192.30.
Titan Company Ltd rose as much as 12 per cent in intraday trade to hit its fresh 52-week high of Rs 347.65. It hit a low of Rs 335 in trade today. PC Jeweller also rose as much as 19.9 per cent to hit its 52-week high of Rs 124.30.
At 09:28 a.m.; Titan Company was trading 9.7 per cent higher at Rs 340.35, while PC Jeweller pared some of the morning gains but was still trading 16 per cent higher at Rs 121.
Rajesh Exports was trading 14 per cent higher at Rs 145.90. It hit a low of Rs 134 and a 52-week high of Rs 148.05. Gitanjali Gems surged 14 per cent to Rs 104.15.
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. This facility was available to select banks only and other entities were barred from importing the metal.
Source : economictimes.indiatimes.com
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