LATEST NEWS

Gold price, jewellery scrips rise after RBI's new gold guidelines

Mumbai, July 23 (IANS) Gold prices hit a month high a day after the Reserve Bank of India tightened gold import norms to curb the increasing gold imports which have contributed to a widening current account deficit.

The price of the precious metal increased by Rs.685 at Rs.28,365 per 10 grams in the New Delhi area on the back of healthy buying following RBI's fresh import norms. Gold had last touched the price level on June 19, 2013.

Not only gold prices, scrip of companies engaged in jewellery business too rose.

Stocks of firms like Tribhovandas Bhimji Zaveri (TBZ) at the Bombay Stock Exchange (BSE) rose around 6.29 percent at Rs.211.25 from its previous close of Rs.198.75. Titan Industries' share went up by 5.85 percent at Rs.275.25 from its previous close of Rs.260.05 and PC Jeweller's stocks gained 18.70 percent at Rs.88.25 from its previous close of Rs.74.35.

According to market analysts, the new guidelines which also gave a clarification on the continuation of gold leasing from banks to companies and that the importers have to ensure 20 percent of total shipped in material to be used for export purposes, helped some of the companies gain in the day's trade.

A month ago, RBI has allowed jewellers to import gold only for export purposes, whereas gold leasing for domestic consumption was banned. In gold leasing jewellery companies do not require to pay upfront on gold purchases uptill a period of 90-180 days.

To control the current account deficit, the government has taken a slew of measures to curb demand for gold, which accounts for a large share of the country's imports. The government had also increased duty on gold twice in the past five months.

India's current-account deficit for the 2012-13 stood at $87.8 billion, or 4.8 percent of the nation's gross domestic product (GDP) from $78.2 billion, or 4.2 percent in 2011-12.

"Nominated agencies will ensure that at least one fifth of every lot of import of gold is exclusively made available for the purpose of export. They shall make available gold in any form for domestic use only to entities engaged in jewellery business," the RBI had said in a statement Monday.

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.

DON'T MISS

  • Droom has made auto trade a breeze

    Its website lists everything that has a wheel and a motor - from bicycles and super bikes to luxury cars, planes and yachts. …

  • How Hike has taken on global competitors

    The messaging app company had zero users around January 2013. It crossed 35 million users in August 2014 and in January this year claimed over 100 million users. That is a mind-boggling number for any ... …

  • "Internet retailing of books is a wonderful development"

    Richard Charkin, Executive Director, Bloomsbury Publishing, talks to Sapna Nair Purohit about the changing publishing landscape globally. …

  • "India has a competent enough system to check quality standards"

    The $25-billion Indian pharma industry is going through intense regulatory scrutiny. Foreign drug regulators such as the US Food and Drug Adminis-tration (FDA) and EU's European Medicines Agency have increased ... …

  • Final Push

    GST infrastructure is a work in Progress. The government will have to burn the midnight oil if it wants to meet the April 2017 deadline. …

  • TRAI'S Web of Confusion

    The telecom regulator must first simplify its processes before dealing with net neutrality. …

  • Shop Till You Drop

    Once the model shops and establishments act comes into force, shops, malls and cinemas will be allowed to remain open 24x7. But does it make business sense? …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    261.90-1.65-0.63%
    ICICIBANK.BO
    331.30+1.90+0.58%
    TATAMTRDVR.BO
    1,009.25-5.55-0.55%
    RELIANCE.BO
    166.00-2.95-1.75%
    VEDL.BO
    12.69+0.14+1.12%
    JPASSOCIAT.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    104.40+17.40+20.00%
    BLUECHIPT.BO
    60.60+10.10+20.00%
    SAHARAHOUS.BO
    380.80+63.45+19.99%
    SESHAPAPER.BO
    22.55+3.75+19.95%
    PEARLPOLY.BO
    31.00+5.05+19.46%
    CONART.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    27.25-5.55-16.92%
    SPLIL.BO
    30.00-4.10-12.02%
    PARNAXLAB.BO
    26.55-3.20-10.76%
    UPSURGE.BO
    13.95-1.50-9.71%
    HBPOR.BO
    12.01-0.94-7.26%
    ASIANTNE.BO
  •  
    Recent Quotes
    Symbol Price Change % ChgChart 
    Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
    You need to enable your browser cookies to view your most recent quotes.
  • Recent Quotes News

    •  
      Sign-in to view quotes in your portfolios.

    Yahoo Cricket