Jewellery stocks dazzle

The top gainers currently on the bourses are Gitanjali Gems, up almost 13.5% at Rs.104, followed by Titan which is up over 9% at Rs.338 and even MMTC is up – over 6.5% at Rs.97.95. TBZ briefly breached the upper circuit at Rs.191.80, Thangamayil is up almost 20% at Rs.154,  PC Jeweller has hit a new high at Rs.124.30, Winsome Diamonds hit the 20% upper circuit at Rs.6.55 and even others like Tara Jewels, Shree Ganesh Jewellery are all up in the green.

The jewellery stocks are celebrating RBI’s move to ease the strict import restrictions, placed on gold to tame the rupee and bring down CAD. Yesterday, RBI announced the it was easing import restrictions by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports. It has stated that Star trading houses/premier trading houses (STH/PTH), which are registered as nominated agencies by the Director General of Foreign Trade (DGFT), may now import gold under 20:80 scheme.  Till date, this facility was available only to select banks and restricted for others and now it has been opened up for others too.

The revised guidelines have come into force with immediate effect.