Jewellery Stocks Shine, Gain Up To 20 Pct On RBI Move

MUMBAI: Jewellery stocks on Monday rose sharply by up to 20 per cent on easing of gold import restrictions by the Reserve Bank.

Shares of Shree Ganesh Jewellery House soared 20 per cent, while Gitanjali Gems surged 19.96 per cent and Tribhovandas Bhimji Zaveri zoomed 18.54 per cent on the BSE.

Among others, PC Jeweller jumped 14.93 per cent and Titan Company rallied 8 per cent.

Easing restrictions on gold imports, the Reserve Bank of India had on Friday scrapped the controversial 80:20 scheme, a move which the industry believes will bring down prices of the precious metal.

Under the 80:20 norm, put in place in August 2013 to curb high gold inflows that was widening the current account deficit, at least 20 per cent of the imported gold had to be mandatorily exported before bringing in new lots.

"It has been decided by the Government of India to withdraw the 20:80 scheme and restrictions placed on import of gold. Accordingly, all instructions issued about the scheme from time to time...stand withdrawn with immediate effect," the RBI had said in a notification on Friday.

Gold imports jumped 280 per cent to $4.17 billion in October, as per the latest trade data. The in-bound shipments touched 95 tonnes in September this year as against 12 tonnes a year ago.

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