Titan, Kalyan Jewellers shares rise up to 8% as FM slashes customs duty on gold and silver; MCX Gold falls over 5%

Shares of jewellery companies and gold retailers rallied up to 8% on Tuesday, July 23, following the announcement of customs duty reduction on gold and silver by Finance Minister Nirmala Sitharaman in her Budget speech.

In her first full budget presentation under the Modi 3.0 government, 2024, the Finance Minister proposed to cut the customs duty on gold and silver to 6% from 15% earlier. Further, the customs duty on platinum has also been reduced to 6.4% from the existing 15.4%.

According to experts, customs duty cuts on gold and silver may lead to a decline in domestic prices and could lift demand for gold. Following the announcement, MCX Gold futures were down over 5% to trade around ₹68,848/ 10 gram, while MCX Silver futures traded ₹85,412/kg, down 4.2%.

Shares of gold retailer Rajesh Exports rallied up to 8.24% to an intraday high of ₹322.2 apiece on the NSE. However, the stock trimmed some gains to close at ₹318 apiece, up 6.84%.

Titan Ltd shares also rallied 7.2% to an intraday high of ₹3,490 apiece. However, the stock pared early gains to close 6.5% higher at ₹3,468 per piece on the NSE.

Leading jewellery retailer Kalyan Jewellers emerged as the top NIFTY Midcap gainer. The shares rallied as much as 6.11% to hit their 52-week high of ₹561.65 per piece. The stock closed 4.4% higher at ₹552 apiece on the NSE.

Jewellery manufacturer and exporter Goldiam International Ltd shares rose over 8% to touch an intraday high of ₹185.8 per share on the NSE. The stock pared early gains to close 8.0% higher at ₹184 apiece.

Similarly, Thangamayil Jewellery Ltd shares closed 8.5% higher at ₹1,915 per piece.