Budget 2016: Jewellery stocks fall 1-4% on imposition of excise duty

Moneycontrol Bureau

Shares of jewellery makers like Titan Company, Tara Jewels, Gitanjali Gems and PC Jeweller were down 1-4 percent on Monday following imposition of excise duty on jewellery articles.

Finance Minister Arun Jaitley, in his Union Budget speech today said, "I proposed to impose an excise duty of ‘1 percent without input tax credit or 12.5 percent with input tax credit’ on articles of jewellery (excluding silver jewellery, other than studded with diamonds and some other precious stones), with a higher exemption and eligibility limits of Rs 6 crore and Rs 12 crore respectively."

Shares of Titan Company declined 4.3 percent to close at Rs 316.35 on the BSE. Among others, Gitanjali Gems, Goenka Diamond, PC Jeweller, Renaissance Jewellery, Tara Jewels and Tribhovandas Bhimji Zaveri were down 1-3.6 percent at close.Posted by Sunil Shankar Matkar