BUDGET 2024 SPARKS A GLITTERING RALLY: JEWELLERY STOCKS SOAR ON CUSTOMS DUTY CUT
25th July 2024
The government’s recent reduction of customs duties on gold, silver, and critical minerals has ignited a surge in jewellery stocks, continuing for the second consecutive day. This strategic decision, aimed at lowering input costs, enhancing value addition, boosting export competitiveness, curbing smuggling, and stimulating domestic manufacturing, has been warmly welcomed by investors.
Impact on Market
On Tuesday, the announcement of these cuts sent ripples through the market, with jewellery stocks riding the wave of optimism. By Wednesday, the sector continued its upward trajectory as investors reacted positively to the anticipated reduction in domestic prices and the potential boost in demand.
Leading Performers
Leading the charge, Kalyan Jewellers India witnessed a spectacular 15% jump, reaching an all-time high of ₹633.35 per share. Other notable gainers included Motisons, with shares rising 7% to ₹165.75, and RBZ Jewellers and PC Jeweller, both hitting the 5% upper circuit limit. Thangamayil Jewellery also saw a significant increase, with shares climbing another 3.5% today following an 8% surge in the previous session. Meanwhile, Titan’s stock rose by a steady 2.5%.
Future Outlook
This remarkable rally underscores the transformative impact of the Budget 2024 customs duty cuts, positioning the jewellery sector for a promising future amid favourable economic policies.
