After opening on a weak note, the Indian stock markets have moved further in the red during the morning session. All the sectoral indices are trading weak with the Realty and the Consumer Durables indices being the biggest losers.
Most of the Consumer Durables stocks, especially the jewellery companies are trading negative today. Tribhovandas Bhimji Zaveri Ltd is trading down 5.6% and Titan Industries is down 11.4%. Gitanjali Gems is up 2.8%. The RBI in a circular on Wednesday said gold jewellery companies will have to make full payment for buying gold for jewellery making. The move would result in a sharp rise in working capital requirements for jewellers. It will also hurt their expansion plans. This is the third time in two months that the RBI has changed gold import norms, disallowing leasing of gold. It had first banned gold leasing in June, then reversed the decision in July and has now again disallowed it.
The government on Tuesday had increased the import duty on gold, silver and platinum to 10% with a view to arrest the declining value of the rupee. The excise duty on refined gold and silver bars was also raised from 7%to 9%.
Most of the Energy stocks are trading in the red except Essar Oil and Jindal Drill which are the only stocks among gainers. Gujarat Gas and Gujarat State Petronet are leading the losers. Reliance Industries Ltd (RIL) has qualified for the bidding round for the exploration and development of two oil and gas blocks in Nassiria oil and gas fields of Iraq. The opportunity comes as a part of re-development of war devastated Republic of Iraq. The company said that it would also explore possibilities of development of petrochemicals and refineries associated with the development of the blocks. Stock of RIL is trading down 2.9% today.