Gems and jewellery stocks were in focus on Tuesday after the government announced a cut of 5% in custom duty on gold and silver during Union Budget 2021 presentation. Notably, gems and jewellery stocks were trading on a mixed note with Titan paring its early gains.
Titan is the most valued company on stock exchanges in this sector. The stock had gained by at least 2.2% with an intraday high of Rs1535.50 per piece in early deals of Sensex. However, the stock scrapped its early gains and was trading at Rs1500.45 per piece down by 0.13% on Sensex at around 11.24 am.
Stocks that were in the red are -
Thangamayil Jewellery down by 1.3%, Tribhovandas Bhimji Zaveri below 2.44% and Uday Jewellery tumbling by nearly 8%. Stocks like Vaibhav Global, Goldiam International and PC Jeweller were marginally down.
On the contrary, Renaissance Global and
Atlas Jewellery surged over 1% each. Rajesh Exports was marginally up.
In her Budget 2021 speech, Finance Minister Nirmala Sitharaman said, "Gold and silver presently attract a basic customs duty of 12.5%. Since the duty was raised from 10% in July 2019, prices of precious metals have risen sharply. To bring it closer to previous levels, we are rationalizing custom duty on gold and silver."
With that, custom duty on gold and silver was trimmed to 7.5% from the previous 12.5%.
Reduction was also made in the types of metals such as duty on gold and silver dore bar was cut to 6.9% and 6.1% from the previous 11.85% and 11% respectively.
Custom on Platinum, Pallidum, etc. was reduced to 10% from the previous 12.5%. Meanwhile, Gold/silver findings are reduced by half to 10% from earlier 20%.