Budget 2024: Titan, Senco Gold, others share price gained up to 12% with custom duty on Gold, Silver being lowered

Budget 2024: Titan Company , Senco Gold Ltd, PC Jeweller Ltd, Kalyan Jewellers India Ltd others saw share price gain up to 12% during Intraday trades on Tuesday .The Finance minister Nirmala Sitharaman proposed to cut customs duty on gold and silver to 6% during the Budget 2024 today. Even custom duty on Platinum has bene proposed to be reduced to 6.4%.

The Titan Company share price was among largest gainers in Nifty 50 stocks even as Nifty-50 index saw steep corrections, The Titan Company Share price that opened at ₹3,255.10 only marginally higher than previous close of ₹3,254.45 rose to ₹3,490.00 levels, marking gains of more than 7.2%.

Senco Gold however that also opened ₹948.80 almost at similar levels of ₹941.60, gained to highs of ₹1,054.35 marking almost12% gains on the NSE on Tuesday.

Senco Gold share price while was largest gainer among Jewellery stocks , Titan Company share price was largest gainer amongst Nifty-50 stocks.

The Jwelleru stocks had been facing concerns on demand with rising Gold and Silver prices. However experts said that with the reduction in customs duty on Gold and silver total incidence of 18.5% including GST will now become 9.2% and this should be positive for demand.

Also more so looking at the upcoming festive season, lower tax incidence should spur the demand.

Sriram Iyer, Senior Research Analyst at Reliance Securities said that Ahead of the interim budget, the government had increased duty on the import of gold and silver to 15% and from the existing 10%. This includes basic custom duty of 10% and Agriculture Infrastructure and Development Cess (AIDC) of 5%

Now in the final budget today, the Indian government reduced the customs duty in both gold and silver bars from 10% to 5%. Additionally, the Agriculture Infrastructure and Development Cess (AIDC) has also been reduced to 1%. So, the total taxation rate will be 6% instead of 15%, a reduction of 9%.

Gold and silver prices tumbled over 5% this Tuesday afternoon after the announcement and further selling cannot be ruled out, added Iyer.

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