Jewellery Share Shine After RBI Relaxed Gold Import Norms

Jewellery Stocks were in limelight after the Reserve Bank of India allowed nominated banks to provide gold on loan to jewellers, thereby reducing their funding cost. The central bank also removes restriction on import of gold coins.

the RBI said, "Nominated banks are now permitted to import gold on consignment basis. All sale of gold domestically will, however, be against upfront payments. Banks are free to grant gold metal loans.on November 28 last year, gold imports were linked with its exports.

shares of jewellery maker such as Gitanjali Gems, Tribhovandas Bhimji Zaveri (TBZ), PC Jeweller, Rajesh Exports and Titan Company were trading higher by up to 5% on reports that the Reserve Bank of India allowed nominated banks to provide gold on loan to jewellers.

On the sectoral front, metal, consumer durables and capital goods witnessed the maximum gain in trade, while fast moving consumer remained the lone loser on the BSE sectoral space.

The broader indices too were going neck-to-neck with benchmarks, while the market breadth on the BSE was positive; there were 1243 shares on the gaining side against 729 shares on the losing side while 62 shares remain unchanged