Titan Shares Fall After Centre Raises Gold Import Duty To 15% — Is Jewellery Demand At Risk?

The Titan share price remained under pressure after the gold duty hike, and PM Modi’s appeal to avoid gold purchases weighed on jewellery stocks. The shares of Titan Company declined 0.72% to Rs 4,026.30 during trade on Wednesday, at the time of writing. Gold and silver shares declined after the centre revised the import duty to 15%. Titan shares had opened at Rs 4,030 and reached an intraday high of Rs 4,089.20 and fallen to a low of Rs 3,985.10. It opened at Rs 4,030. It was intra-day trading at a high of Rs 4,089.20 against an intra-day low of Rs 3,985.10. VWAP for Titan was at 4,025.31 for the session.

Jewellery stocks declined amid concerns that a revision in gold and silver duties might spark inflation. It has investors keenly observing jewellery shares, particularly after a shocking revision of gold and silver duties that may potentially send domestic prices of the precious metals soaring.

Also Read: Gold, Silver Imports Get Costlier! India Hikes Duty To 15% In Midnight Action

Market participants said the higher import duty could hit demand for jewellery in the short term, especially as gold prices are already trading near record highs.

As they assess the impact of rising bullion prices on margins, demand and festive season buying trends, traders will probably continue to focus on Titan, a significant part of whose revenues come from jewellery sales via its Tanishq brand.

PM Modi’s gold pitch adds to sentiment pressure

The latest squeeze on jewellery counters comes days after Prime Minister Narendra Modi urged citizens to avoid buying gold and to postpone foreign travel for a year to help preserve India’s foreign exchange reserves in the face of increasing global uncertainty and crude oil prices.

“We must save foreign exchange by all means,” Modi said at a public gathering in Hyderabad’s Parade Grounds on Sunday, calling for a cut in non-essential expenditure in the present crisis.

What traders are watching now 

Gold prices are expected to remain elevated after the duty hike, and market participants are now watching to see if higher bullion costs affect jewellery demand in the coming quarters.

Analysts believe that organised jewellery players like Titan may continue to remain volatile in the near term as investors track consumer sentiment, wedding demand and overall spending trends in the jewellery segment.

Also Read: Are You Planning to Buy Gold? Here’s How The 15% Import Duty Hike Will Hit Your Wallet!

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)