Shares of frontline jewellery companies are under hammer and trading lower by up to 12% on concerns that a frequent rises in gold import duty and the sustained depreciation of the rupee against the dollar may dampen the growth of the sector.
Titan Industries, Shree Ganesh Jewellery House, Tara Jewels, Gitanjali Gems and Tribhovandas Bhimji Zaveri (TBZ) are down in the range of 2-17% on the Bombay Stock Exchange (BSE).
Last week, the government increased duty on gold from 6% to 8% to curb its import. This was the second time in six months that the duty was raised. In January, the government had raised the duty to 6% from 4%.
The rise in import duty is likely to weigh on earnings outlook of jewellery companies as well as margins, according to analysts.
Among the individual stocks, Tara Jewels has tanked 17% to Rs 115, its lowest value since listing on December 2012. Shree Ganesh Jewellery House has dipped 16% to Rs 78, followed TBZ and Gitanjali Gems are down 3% each at Rs 238 and Rs 544 respectively.
Titan Industries, Shree Ganesh Jewellery House, Tara Jewels, Gitanjali Gems and Tribhovandas Bhimji Zaveri (TBZ) are down in the range of 2-17% on the Bombay Stock Exchange (BSE).
Last week, the government increased duty on gold from 6% to 8% to curb its import. This was the second time in six months that the duty was raised. In January, the government had raised the duty to 6% from 4%.
The rise in import duty is likely to weigh on earnings outlook of jewellery companies as well as margins, according to analysts.
Among the individual stocks, Tara Jewels has tanked 17% to Rs 115, its lowest value since listing on December 2012. Shree Ganesh Jewellery House has dipped 16% to Rs 78, followed TBZ and Gitanjali Gems are down 3% each at Rs 238 and Rs 544 respectively.
