Union Budget 2024: Gold And Jewellery Retailers See Stock Surge; Check The Shares Of Senco, Titan & Kalyan Jewellers

Union Budget 2024: On the BSE, Senco Gold's stock soared by 6.16 per cent, reaching Rs 1,000.80 per share; PC Jeweller increased by 5 per cent, hitting its upper circuit limit at Rs 74.16

Nirmala Sithraman proposed a reduction in the customs duty on gold and silver to 6 per cent. She also announced a decrease in the customs duty for platinum to 6.4 per cent.

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Gold jewellery stocks: Shares of gold and jewellery retailers experienced a significant surge on Tuesday after Finance Minister Nirmala Sitharaman announced a reduction in the basic customs duty on gold and silver to 6 per cent. On the BSE, Senco Gold's stock soared by 6.16 per cent, reaching Rs 1,000.80 per share. Rajesh Exports saw a rise of 5.49 per cent to Rs 313.90, and PC Jeweller increased by 5 per cent, hitting its upper circuit limit at Rs 74.16.

Other notable gains included Titan Company, which climbed 3.66 per cent to Rs 3,371.65 per share. Tribhovandas Bhimji Zaveri rose by 2.79 per cent to Rs 140.20, while Kalyan Jewellers India gained 1.54 per cent, trading at Rs 537.05 per share.

Contrarily, the 30-share BSE Sensex benchmark dropped by 996.53 points or 1.24 per cent, trading at 79,505.55.

Nirmala Sithraman, in her budget speech in the Lok Sabha proposed a reduction in the customs duty on gold and silver to 6 per cent. She also announced a decrease in the customs duty for platinum to 6.4 per cent. Following this announcement, shares of jewellery to lower the prices of these precious metals, offering relief to both buyers and investors.

“The proposed reduction in customs duties to 6 per cent on gold and silver, and 6.5 per cent on platinum, will enhance sales by making these precious metals more affordable. The implementation of safe harbor rates for the diamond-cutting industry, for foreign mining companies selling rough diamonds in India, will stimulate growth, boost consumer spending, and increase global competitiveness," said Amit Pratihari, MD, De Beers Forevermark.

In addition to the reductions on gold and silver, the finance minister announced a reduction in the basic customs duty on platinum to 6.4 per cent. She also proposed the removal of the basic customs duty on ferro nickel and blister copper.

The reduction in customs duties on these precious metals has been a long-standing demand of the gems and jewellery industry.

Jewellery traders have long been advocating for a reduction in customs duties on precious metals. Previously, the effective customs duty rate was 15 per cent, which many considered excessively high and financially burdensome. The Modi government's decision to cut these duties in this Budget addresses these enduring concerns.