Mumbai: Jewellery stocks on Monday jumped up to 20 percent after the Reserve Bank eased restrictions on gold import.
Shares of Shree Ganesh Jewellery House soared 20 percent, while Gitanjali Gems surged 19.96 percent and Tribhovandas Bhimji Zaveri zoomed 19.28 percent on the BSE.
Among others, Titan Company rallied 5.30 percent, Thangamayil Jewellery (4.51 percent), Tara Jewels (3.84 percent), Rajesh Exports (3.38 percent) and PC Jeweller (2.78 percent).
"We believe this move will increase supply of gold in the domestic market and reduce the premium paid on gold," ICICI Securities said in a report.
Easing restrictions on gold imports, the Reserve Bank had on Friday scrapped the controversial 80:20 scheme, a move which the industry believes will bring down prices of the precious metal.
Under the 80:20 norm, put in place in August 2013 to curb high gold inflows that was widening the current account deficit, at least 20 percent of the imported gold had to be mandatorily exported before bringing in new lots.
"It has been decided by the Government of India to withdraw the 20:80 scheme and restrictions placed on import of gold. Accordingly, all instructions issued about the scheme from time to time ... Stand withdrawn with immediate effect," the RBI had said in a notification on Friday.
Gold imports jumped 280 percent to USD 4.17 billion in October, as per the latest trade data. The in-bound shipments touched 95 tonnes in September this year as against 12 tonnes a year ago.
