Shares of jewellery makers slump on the back of recent government measures to curb gold sales and falls in global prices of gold.
PC JewellerS Ltd is down 9.8 percent, Tribhovandas Bhimji Zaveri Ltd falls 12.5 percent, while Gitanjali Gems Ltd sinks by its daily limit of 20 percent.
India has raised import duties for gold twice since Jan. 1, doubling it to 8 percent, but the central bank moves to tackle supply, such as making jewellers pay for gold up front, have had more impact.
Imports could fall sharply in June and July, industry players say, because of these upfront payments, making it hard for the millions of small family shops who account for most of India's jewellery business to buy.
"There is no choice for the government but to curb imports which should hit jewellers' volumes," says G Chokkalingam, chief investment officer at Centrum Wealth Management.