Financials News

Jewellery stocks shine, surge up to 5.3 per cent

Jewellery stocks shine, surge up to 5.3 per cent

New Delhi: Jewellery stocks on Monday rose up to 5.3 per cent on hopes that gold sales will pick up pace during Diwali with the government saying PAN will not be mandatory on the purchase of jewellery for over Rs 50,000.

Shares of Tribhovandas Bhimji Zaveri (TBZ) jumped 5.27 per cent, Thangamayil Jewellery surged 5 per cent and Gitanjali Gems soared 3.58 per cent on BSE. Among others, Titan Company gained 3.48 per cent, Renaissance Jewellery went up by 1.87 per cent and PC Jeweller rose by 1.40 per cent.

Higher sales are expected on Dhanteras to be celebrated on October 17 this year. Dhanteras is considered to be an auspicious day for buying gold, silver and other valuables and is largely celebrated in North and West India.

“This is a big relief and there could not have been a better Diwali gift than this for both jewellers and consumers,” All India Gems and Jewellery Federation Chairman Nitin Kandelwal told PTI.

More than jewellers, consumers were affected with the notification as they were not comfortable showing PAN and Aadhaar documents.

“The rollback of this order will definitely improve ease of doing business,” he said.

In a notification issued on August 23, the government had brought jewellery dealers under the purview of the Prevention of Money Laundering Act 2002 (PMLA) and were told to report on buyers making purchases over Rs 50,000.

Therefore, PAN and Aadhaar cards were made mandatory as part of ‘Know your customer (KYC)’ rule. A decision to revoke the said notification was taken in the GST Council meeting held last week.

PTI