Jewellery stocks shine as government drafts new gold policy
Even as the markets opening in red on Friday, the stocks of gold and jewellery makers were shining in anticipation of the announcement of a new gold policy.
The major highlights of the new draft policy for gold includes a demand for bank guarantees and a relaxation of GST applicable on jewellery exports. The finance ministry is also keen on setting up a Gold Board to address the issues faced by the sector.
Besides, the ndustry has requested the government to cut import duty applicable on gold, which is currently at 10 per cent. They have also been demanding more incentives under the government's Merchandise Exports from India Scheme (MEIS).
This move comes at a time when the government badly needs to promote exports to reduce the increasing fiscal deficit.
Reacting to the positive news, jewellery and gold stock were buzzing in early morning trade. The stock of Tribhovandas Bhimji Zaveri was trading at Rs. 60.40 per share, up by 7.19, Rajesh Exports was at Rs. 574.80 per share, up by 3.00 per cent and Golkunda Diamonds & Jewellery was at Rs. 13.00 up by 3.17 per cent. While PC Jeweller was at Rs. 58.00 per share, up 2.75%, followed by Thangamayil Jewellery at Rs. 351.00 per share, up 2.66 per cent. Lypsa Gems and Tara Jewels were also up 2 per cent on Friday.