Whalesbook
Gold Duty Hike Shocks Market
The Centre has doubled the import duty levied on gold, silver, and platinum to 10% effective midnight May 13, moving from the previous 5% levy. This decision, formalized in an official notification, aims to curb imports and bolster India's foreign exchange reserves, which have reportedly come under strain due to geopolitical tensions in West Asia. Prime Minister Narendra Modi had previously urged citizens to defer gold purchases.
The increased duty is expected to make precious metals significantly costlier for consumers, potentially impacting demand and the profitability of jewellery manufacturers and retailers. While jewellery findings like hooks and clasps will face a 5% duty for gold and silver, platinum findings will attract a 5.4% levy.
Oil Prices Spike Amid Geopolitical Fears
International oil prices held strong gains, with Brent crude trading near $107 a barrel and West Texas Intermediate hovering around $102. The market remains sensitive to any signs of escalating conflict in the Middle East, a critical region for global oil supply, particularly concerning the Strait of Hormuz waterway. The ongoing geopolitical climate continues to be a significant driver for energy markets.
Indian Equities Extend Losses
Yesterday, Indian benchmark indices experienced their steepest fall since March 30. The NSE Nifty 50 closed down 1.49% at 23,815.85, while the BSE Sensex dropped 1.70% to 76,015.28. This sell-off resulted in a loss of approximately ₹6.4 lakh crore in investor wealth. Today, the GIFT Nifty is trading marginally higher, indicating a potentially flat to slightly positive open for domestic markets.
Key Q4 Earnings Unfold
Investors are closely watching a significant list of companies scheduled to announce their fourth-quarter financial results. Prominent among them are Balaji Amines Ltd, Bharti Airtel Ltd, Cipla Ltd, DLF Ltd, Hindustan Petroleum Corporation Ltd, Oil India Ltd, Tata Motors Ltd, and TVS Motor Company Ltd. Stocks to watch also include Adani Ports and Special Economic Zone Ltd, Vodafone Idea, Texmaco Rail, and HCL Technologies. Jewellery companies are in focus due to the duty hike, while firms like Fractal Analytics, Aye Finance, Pine Labs, and Niva Bupa are noted due to lock-in expiry events.