Mumbai, June 5 (IANS) With the Goods and Services Tax (GST) rate fixed at three per cent for gold, stocks of gems and jewellery companies like PC Jeweller, Titan, Tribhovandas Bhimji Zaveri (TBZ), Gitanjali Gems and Tara Jewels shone and hit fresh highs on Monday.
Around 2.10 p.m., shares of Delhi-based PC Jeweller traded higher by 10.96 per cent at Rs 558.20 per share on the BSE.
Scrips of Titan Company led the rally by trading at Rs 555.35 per share -- up 17.60 per cent -- followed by TBZ (up 6.51 per cent at Rs 99 per share), Tara Jewels (up 5.25 per cent at Rs 30.05 per share) and Gitanjali Gems (up five per cent at Rs 70.40 per share).
However, shares of gold and diamond jewellery manufacturer Rajesh Exports traded lower by 0.54 per cent at Rs 649 per share.
"Shares of jewellery stocks surged after the tax on gold and jewellery was fixed at three per cent, which is lower than the expectation of five per cent. On an average, jewellery stocks have gained more than six per cent," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
"With the implementation of GST, compliance level will increase which will benefit the organised sector against the unorganised sector. So the surge in prices is factoring better-than-expected tax rate and level playing field for organised sector against the unorganised sector," Desai said.
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.