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Titan, Rajesh Exports fall after hike in gold, silver duty

The company has reported foreign exchange losses of Rs 300 crore against a street expectation of Rs 250 crore. The company expected less profit margin benefit from the currency fall.

Titan, Rajesh Exports fall after hike in gold, silver duty

Stocks of Titan Industries, which owns jewellery brand Tanishq, fell after the government announced a hike in import duties on gold and silver.  Rajesh Exports, manufacturer of gold & diamond jewellery, slumped over 2.5% after the announcement.

The government has changed the structure of duties on gold. The import duty on gold has been set at 2 per cent of the value of imports. Import duty on silver has been changed from flat Rs 1,500 per kg to 6 per cent of the value of the import.

These changes have come in response to a surge in gold and silver imports late last year. India's gold imports for FY12 are expected to touch $ 55 billion, a rise of as much as 60 per cent. The massive surge in gold imports has led to increase in current account deficit.