Budget 2019-Sudden Impact! FM hikes custom duty on yellow metal to 12.5%, gold stocks tumble
Budget 2019: FM Sitharaman said, It is proposed to increase custom duty on gold and other precious metals from 10% to 12.5%
There was bloodbath in major gold stocks like PC Jewellers, Titan Company, Thangamayil Jewellery, Tribhovandas Bhimji Zaveri and others after Finance Minister Nirmala Sitharaman hiked custom duty on yellow metal during Budget 2019 speech. Sitharaman said, "It is also proposed to increase custom duty on gold and other precious metals from 10% to 12.5%" The reaction was sudden and quite impactful! Following the move, investors started to exit gold shares on Dalal Street!
Post Budget 2019 announcement, at around 1418 hours, the share price of Tribhovandas Bhimji Zaveri was trading at Rs 42.10 per piece down by 5.18% on Sensex. Similarly, share price of Thangamayil Jewellery plunged by 5.92% trading at Rs 318 per piece.
Shares of Titan Company also tumbled by over 3% after touching an intraday low of Rs 1250.55 per piece right after the custom duty announcement. However, at present, the stock is performing at Rs 1286 per piece down by 0.36% on Sensex. While shares of PC Jeweller was trading at Rs 40.90 per piece, below 3.65% on the index.
Other gold stocks like Goldiam International, White Organic, SRS, Darshan Orna, Renaissance, Ashapuri Gold and Narbada Gems also saw selling pressure.
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