The government’s recent move to hike import duties on 19 ‘non-essential’ items had a mixed impact on the stock markets on Thursday. Most consumer goods makers stocks, like Whirpool (-1.35%), Symphony (-1.20%) and Blue Star (-1.39%) were trading with losses, while tyre makers shares posted big gains in early morning trade. JK Tyre posted its biggest intra-day percentage gain in two years.
Titan company shares jumped nearly 4% as the government did not hike the import duty on gold from the existing 10%. The company is also unlikely to be affected by the customs duty hike on categories of diamond such as semi-processed, half cut or broken, and cut and polished coloured gemstone to 7.5%, from 5% earlier. Luggage maker VIP Industries shares were down nearly 3% during morning deals.
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Footwear maker Khadim India’s shares were down 6.95% on Thursday. Aviation stocks too took a hit on Thursday, with Jet Airways shares plunging over 6% during mid-morning trade session. Shares of SpiceJet and InterGlobe Aviation, too, fell to their respective 52-week lows slipping 4% and 3.89% respectively.
In a major move to narrow the country’s current account deficit (CAD) and stem the fall of the rupee, the government on Wednesday hiked import duties on 19 products: air conditioners, household refrigerators, washing machines, compressors for air conditioners and refrigerators, speakers, footwear, radial car tyres, various gems and jewellery products, plastic goods, luggage carriers like suitcases etc, and ATF.
However, no import curbs have been imposed on gold and steel. The new import duties will go into effect from September 27, an official statement said on Wednesday.
