Listed jewellery companies bore the brunt of investor ire following the import duty hike on gold to 6% from 4% announced yesterday. Companies such Gitanjali Gems, Rajesh Exports, Shree Ganesh Jewellery House, Titan Industries and P C Jewellers were all down between 0.5 to 1.5% during morning trade today on the Bombay Stock Exchange (BSE).
The government increased the customs duty on gold and platinum by 200 basis points in a move aimed at curtailing imports of the two metals. Gold was one of the biggest contributors to the spiralling current account deficit which stood at 5.4% of the gross domestic product in the July-September quarter.
The government also allowed gold exchange-traded funds (ETFs) to deposit part of the physical gold held by them with banks and proposed relaxation in the Gold Deposit Schemes of banks to attract individual investors to put their idle gold in circulation.