Jewellery Stocks Tumble as India Hikes Import Duties

Amidst concerns over decreasing demand, jewellery stocks faced significant selling pressure for the third consecutive day on Wednesday. The decline was triggered by the Indian government's decision to increase import duties on gold and silver from 6% to 15%, aiming to curb the rising import bill exacerbated by the West Asia crisis.

The market saw Sky Gold And Diamonds' shares plummet 11.11%, Kalyan Jewellers slumped 6%, and Senco Gold declined by 4.30%. Other companies like PC Jeweller, Tribhovandas Bhimji Zaveri, and Titan Company also witnessed drops on the BSE.

The duty hikes are part of broader austerity measures suggested by Prime Minister Narendra Modi, meant to save on foreign exchange. Effective May 13, the Finance Ministry's decision includes increases in the social welfare surcharge and the agriculture infrastructure and development cess, ultimately culminating in a 15% overall customs duty on gold imports, significant for India as the world's second-largest gold consumer after China.

(With inputs from agencies.)