Jewellery shares jump as 80:20 rule gets scrapped

Pursuant to the government removing the 80:20 gold import rule, stocks of gem and jewellery companies in India reacted with a positive hike, reports say. The hike ranged from 5-13 percent for companies like Titan, PC Jewellers and Tribhovandas Bhimji Jewellers (TBZ).

The gold import rule was imposed last year mandating importing agencies to export 20 percent of what they import in order to make fresh imports. This rule had repercussions of reduced supplies in the domestic market, increased premiums, and costly procurement of gold on lease. With supplies opening up, the quantity of gold-on-lease could also open up, reports say.