Titan, PC Jewellers, Kalyan Jewellers shares rise up to 11% post Sitharaman’s Budget speech; here's why

Shares of gems and jewellery makers rose up to 11% in the afternoon session today after FM Nirmala Sitharaman announced a reduction in basic custom duty on gold and silver from 10% to 6%. The step will lead to an increase in demand of these precious metals, said analysts. While shares of Titan Company rose 4.74% to Rs 3407, shares of Senco Gold zoomed 11.12% to Rs 1054.35 on BSE. Stock of another gold jewellery maker PC Jewellers were stuck in the upper circuit of 5% at Rs 74.16.

Market cap of the Titan rose to Rs 3 lakh crore.  Market cap of PC Jewellers rose to Rs 3451.44 crore. Market cap of Senco Gold zoomed to Rs 7964 crore on BSE.

Shares of Kalyan Jewellers and Rajesh Exports rose 3% and 8.21%, respectively in the afternoon session.

Hareesh V, Head of Commodities, Geojit Financial Services said , "Customs duty on gold and silver has been reduced to 6% that may lead to a decline in domestic prices and perhaps lift demand. The existing duty on gold and silver is 15 percent which comprises 10% of basic custom duty and 5 percent as Agricultural Infrastructure Development cess."

Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One said, “The price impact can already be seen on gold and silver prices on the domestic market as both gold and silver prices are down by around 2.5 percent trading at Rs.70874/10 gms while silver trades at around Rs.87000/kg mark respectively. “

“The momentum will likely continue lower in the coming trading sessions and we can soon see gold price heading lower towards Rs.69000/10 gm's mark and silver towards Rs.85000/kg mark in the next few trading sessions,” added Mallya