As per a leading financial daily, Reserve Bank of India has reduced restrictions on gold imports by withdrawing the 20:80 scheme. Under the scheme, traders and jewellery makers were required to export one-fifth of the precious metal they imported. The easing of the import restriction will enable traders and jewellery makers to import gold freely and increase purchases as gold prices fall in the international market. Among listed gems & jewellery companies, leading player Titan Company is trading up 6.5%.
Majority of the FMCG stocks are trading in the green with HUL and Colgate being the major gainers. As per a leading financial daily, FMCG companies have not resorted to price cuts despite falling commodity prices. In the last six months, weakening crude price has led to fall in the price of inputs such as linear alkyl benzene (LAB) used in detergents and high density polyethylene (HDPE) used in packaging material. Even the price of palm oil and copra has softened in the past six months. However, companies such as Colgate, Dabur, Godrej Consumer Products and Marico have hiked prices in select products. Even FMCG behemoth HUL has not indicated when it will begin reducing prices in most categories even as soap prices were cut in November. The company hiked the price of some shampoos, detergents and creams in November. With urban-led recovery still to set in, FMCG companies have maintained a cautious tone and have been raising prices to protect margins.