The stocks of jewellery companies rallied on Monday as the government reduced base import prices for gold and silver.
According to reports, the government has reduced the base import price of silver to $2,427 per kg (Rs 2,26,096 per kg) from $2,820, and reduced gold’s base import price to $1,526 per 10 gm (Rs 1,42,223) from $1,652 per 10 gram.
The move lifted industry sentiment and sent jewellery stocks to a double-digit rise on Monday.
The biggest gainer came out to be Senco Gold, which surged up to 14.7 percent to Rs 331.95 compared to its previous close of Rs 289.25 apiece.
Earlier in the day, the stock opened 3 percent higher at Rs 298. The stock was hovering at around Rs 329, which was over 13 percent higher.
Similarly, the stock of Kalyan Jewellers jumped over 6.8 percent to Rs 421.45 compared to its previous close of Rs 394.45 apiece.
Earlier in the day, the stock opened flat at Rs 394.55, which was just 10 paise higher than the previous close. The stock was hovering at around Rs 420, which was about 6.5 percent higher.
Another significant gainer of the day stood out to be Madurai-based Thangamayil Jewellery. The stock climbed about 10 percent on Monday to Rs 3,899 from its previous close of Rs 3,545 apiece.
However, the stock had opened just 0.8 percent higher in the morning. It was trading at around Rs 3,780, up 6.6 percent.
Other stocks which gained from the government’s decision were P N Gadgil Jewellers, which surged over 3 percent, Sky Gold and Diamonds, which climbed about 7 percent, and Titan Company, which jumped about 3.8 percent on the bourses.
The government’s decision to lower the base prices has come at a time when the world is facing geopolitical uncertainty. India’s gold imports rose 28.73 percent to $69 billion during the April-February period.
