Finance Minister Nirmala Sitharaman’s Union Budget 2024 announcement brought significant good news for Ratan Tata’s company, Titan, which saw its market value increase by approximately Rs 19,000 crore in a single day. The surge followed a reduction in the import tax on gold and silver by 6%, leading to a 7% rise in Titan’s shares.
Titan, which includes the well-known jewelry brand Tanishq under its umbrella, experienced a notable boost in its stock value. According to data from the Bombay Stock Exchange (BSE), Titan’s shares closed at Rs 3,468.15, up by 6.63%. During the trading session, the shares peaked at Rs 3,490, marking a 7.30% increase. Initially, Titan’s shares opened at a flat Rs 3,252.
Market experts anticipate that Titan’s shares may continue to rise in the coming days. From an investor’s perspective, the surge has been highly profitable. For instance, an investor holding 10,000 Titan shares would have gained Rs 2,155,500 with an increase of Rs 215.55 per share.
Before the announcement, Titan’s market capitalization stood at Rs 2,88,757.16 crore, which soared to Rs 3,07,897.56 crore on Tuesday, reflecting a growth of Rs 19,140.4 crore.
On Tuesday, Finance Minister Nirmala Sitharaman proposed reducing the basic customs duty on gold and silver to 6% and on platinum to 6.4%. This reduction has been a long-standing demand of the gem and jewelry industry. Following this decision, gold prices in the country’s futures market dropped by more than 5%, while silver prices saw a decline of over Rs 5,000 during the trading session. Experts suggest that this decision will bring significant relief to the general public and further stimulate the market.
The positive impact of the budget announcement on Titan underscores the importance of the jewelry industry to the Indian economy and the potential benefits of favorable tax policies.
