Jewellery stocks may lose sheen on likely curbs on gold imports

Jewellery industry stocks are losing lusture, as the government is planning to impose curbs on gold's inward shipment, in a bid to maintain current account deficit(CAD), says a PTI report.

Commenting on the issue, RBI Deputy Governor, S S Mundra, told PTI:  "With the surge in gold imports which has been witnessed, it warranted a re-look. Discussions are still going on between the Reserve Bank of India and the Government of India. Once we know what are the discussions, further view will be taken."

A source told PTI, "Things are being worked out by the Finance Ministry and some announcements may come in a day or two."

However, as compared to 5the statisctics of last year, Gold imports surged almost four times to $4.17 billion in October from USD 1.09 billion.

According to the report in PTI, government conducted a meeting to discuss ways to curb the rising inward shipment of the precious metal. Besides, gold imports have touched 150 tonnes in October as against 24 tonnes a year ago.