Already beaten down stocks in the jewellery sector melted further after the central bank announced new measures to curb the import of gold to rein in the current account deficit.
RBI in a circular on Wednesday said gold jewellery companies will have to make full payment for buying gold for jewellery making.
The move, experts said, would result in working capital requirements going up sharply and will also hurt expansion plans for jewellers.
So far, jewellers used to fetch gold on loan or lease basis from banks, which saved them from much-needed working capital.
Titan Industries declined more than 10% to trade at Rs 242. The stock was downgraded by leading brokerages including CLSA.
PC Jeweller and Tribhovandas Bhimji Zaveri each fell more than 3%. Other jewellers including Thangamayil Jewellery and Shree Ganesh Jewellery House traded weak.
RBI in a circular on Wednesday said gold jewellery companies will have to make full payment for buying gold for jewellery making.
The move, experts said, would result in working capital requirements going up sharply and will also hurt expansion plans for jewellers.
So far, jewellers used to fetch gold on loan or lease basis from banks, which saved them from much-needed working capital.
Titan Industries declined more than 10% to trade at Rs 242. The stock was downgraded by leading brokerages including CLSA.
PC Jeweller and Tribhovandas Bhimji Zaveri each fell more than 3%. Other jewellers including Thangamayil Jewellery and Shree Ganesh Jewellery House traded weak.
