Titan Industries gains over 4% on roll back of excise duty

Recovering all initial losses, shares of Titan Industries today ended with up to 4.15 per cent gains after the government rolled back the one per cent excise duty on both branded and unbranded jewellery.

The stock, which had opened the day weak,  settled for the day 3.51 per cent higher at Rs 249.05 on the BSE. During the day, the scrip touched a high of Rs 250.95, up 4.3 per cent.

At the NSE, the stock closed with a gain of 4.15 per cent at Rs 251.

In terms of volume, 7.52 lakh shares were traded on the BSE, while more than 50 lakh shares changed hands on the NSE.

"Titan Industries surged as the threshold limit for tax on gold jewellery was raised to Rs 5 lakh and levy on all branded and non-branded jewellery was withdrawn," Fairwealth Securities Head Equity Sharmila Joshi said.

"... the government has decided to withdraw the levy on all precious metal jewellery branded or unbranded with effect from March 17, 2012," Mukherjee said while moving the Finance Bill, 2012 for consideration and passage in the Lok Sabha.

Mukherjee in his Budget for 2012-13 had proposed to include unbranded jewellery in the ambit of one per cent excise duty as applicable on branded jewellery, a move which evoked sharp criticism from jewellers and bullion traders.

"Responding to the representation made by the jewellery industry that this would cause undue hardship, I propose to raise the threshold limit for TCS on cash purchase of jewellery from Rs 2 lakh to Rs 5 lakh.

"The threshold limit for cash purchase on bullion shall be retained at Rs 2 lakh. Bullion will not include any coin or other article weighing 10 gm or less," he said.