india gold stocks plunge on import duty hike

"India on Tuesday changed the import duty on gold to two percent of value from the earlier flat Rs 300 per 10 grams, sending the shares of jewellery makers lower.

NEW DELHI(BullionStreet) : Major gold related stocks in India dropped sharply after the world's largest gold consumer changed gold and silver import duty.

Rajesh Exports and Titan Industries suffered nearly three percent loses.

India on Tuesday changed the import duty on gold to two percent of value from the earlier flat Rs 300 per 10 grams, sending the shares of jewellery makers lower.

Silver import duty changed to six percent of value from the earlier Rs 1,500 per kilogram.

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."

http://www.bullionstreet.com/news/india-gold-stocks-plunge-on-import-duty-hike/839

Funny how the officials are blaming gold buying for increasing their trade deficit. Also it just makes everyone's gold there worth 2% more.