Budget 2024: Gold & Silver Stock to Watch

Highlights of Budget 2024

1. Customs Duty Reduction: Customs duty on gold & silver reduced to 6%, & platinum to 6.4%.

2. Mobile Industry Boost: Basic Customs Duty on mobile phones & accessories cut to 15%.

3. GST Rationalization: government plans to rationalize GST tax structure for better compliance & reduced tax incidents.

4. NPS for Minors: NPS Vatsalya program launched, allowing parents to invest in NPS for their children.

5. Fiscal Deficit Target: fiscal deficit is estimated at 4.9% of GDP.

6. FDI Simplification: Rules for Foreign Direct Investment (FDI) to be further simplified to promote Rupee-based investments.

7. Spiritual Tourism: Development of corridors at Vishnupad Temple & Mahabodhi Temple, & support for tourism in Nalanda & Odisha.

8. Space Economy: venture capital fund of ₹ 1,000 crore to expand space economy fivefold over next decade.

9. Rural & Urban Development: ₹ 2.66 lakh crore allocated for rural development & ₹ 2.2 lakh crore for making housing more affordable.

10. Agri Sector Push: Significant allocations & support for agricultural sector, including ₹ 1.52 lakh crore for agriculture-related industries.

Reduction in customs duty on gold, silver, & platinum is likely to impact various stocks on Indian stock exchange, particularly those in jewelry, precious metals, & commodities sectors. Here are some key Gold & SIlver stocks to watch:

Jewellery & Precious Metals Stocks

1. Titan Company Limited (TITAN)

- Titan, major player in Indian jewelry market with its brand Tanishq, is expected to benefit from reduced customs duty, which could lower costs & boost margins.

2. PC Jeweller Limited (PCJEWELLER)

- PC Jeweller is another significant player in jewelry market. Lower customs duty on gold & silver can make their products more competitive & potentially increase sales.

3. Kalyan Jewellers India Limited (KALYANKJIL)

- Kalyan Jewellers, with its wide retail presence, might see improved profit margins & increased demand due to reduced duty on precious metals.

Precious Metals & Commodities Stocks

4. MMTC Limited (MMTC)

- MMTC, major trading company dealing in precious metals, could benefit from increased trading volumes & demand for gold, silver, & platinum.

5. Hindustan Zinc Limited (HINDZINC)

- While primarily zinc producer, Hindustan Zinc is also involved in silver production. Reduced customs duty on silver could positively impact their silver trading segment.

6. Vedanta Limited (VEDL)

- Vedanta, diversified natural resources company, also deals in precious metals. duty reduction might enhance their profitability in precious metals segment.

Banking & Financial Services Stocks

7. State Bank of India (SBIN)

- SBI, along with other banks offering gold loans, might see increase in loan demand due to potentially higher gold sales & purchases spurred by reduced customs duty.

8. HDFC Bank Limited (HDFCBANK)

- HDFC Bank, which also provides gold loans & financing for jewelry purchases, could experience increased activity in this segment.

Commodities & Exchanges

9. Multi Commodity Exchange of India Limited (MCX)

- MCX, which facilitates trading in commodities including gold, silver, & platinum, could see higher trading volumes due to increased investor interest in these metals.

10. SBI Gold ETF (SBIGETS) & Other Gold ETFs

- Exchange-traded funds (ETFs) focusing on gold might attract more investments as reduced customs duty could lead to higher returns on gold investments.

Conclusion

Reduction in customs duty on gold, silver, & platinum is significant development that can positively impact various sectors, especially jewelry & precious metals. Investors should closely monitor these stocks to capitalize on potential benefits arising from this announcement.