Jewellery stocks tank over 11%

Jewellery stocks reversed early gains by falling as much as 11.2 percent, as the interim Budget today made no recommendation for bringing down the import duty on gold.Shares of PC Jeweller tanked 11.24 percent, while those of Titan Company fell by 2.63 per cent on the BSE. Among others, Shree Ganesh Jewellery House was down 1.63 percent, while Gitanjali Gems went down by 1.61 percent.Jewellery stocks rallied in morning trade on anticipation of a cut in import duty, but reversed gains after no such mention was made in the Budget for the next financial year,2014-15. Both the government and the Reserve Bank had taken steps to bring down gold imports, one of the major causes for the widening of the CAD in 2012-13.The government had increased customs duty on gold thrice in 2013 to 10 per cent and the RBI had imposed a series of curbs on inward shipments of the yellow metal.