Investors seem to be enthused by RBI’s surprise move to scrap curbs on imports of the yellow metal. On Monday shares of jewellery retailers rallied anywhere between 3 -20%. The RBI on Friday unexpectedly removed the 80:20 scheme, under which jewellery makers had to mandatorily export 20% of the imported gold before placing further shipments.
Titan, the biggest retailer by market value climbed as much as 8% during the day trade, before closing at R389.65, up 5.3%.
Shares of three jewellery firms including Tribhovandas Bhimji Zaveri, Gitanjali Gems and Shree Ganesh Jewellery House rose to their daily limit of 20%, as the combined wealth of investors in these firms grew by R325 cr.
Tara Jewels and Thangamayil Jewellery just stopped short of hitting upper circuits, up 18.5% and 19.3% respectively. Rajesh Exports gained as much as 8.2% in intraday before closing with a 3.4% gain. Renaissance Jewellery and PC Jeweller rose by 2-3% each.
Titan sawthe biggest single day gains since August 21. On Monday IIFL upgraded the stock to ‘buy’ from ‘add’ with a target price of R450 per share.