Millennium Post

Gold import tariff value cut as CAD woes ease

Import tariff value is the base price at which customs duty is determined to prevent under-invoicing. The tariff value is revised on a fortnightly basis after analysing the global price trend.

Till Sunday, the tariff value on imported gold was at $407 per ten grams, while on silver it stood at $663 per kg. The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official release. Besides precious metals, the tariff value on imported brass scrap has been cut to $3,959 per tonne from $3,995 per tonne, while those on crude soyabean oil has been reduced to $917 per tonne from $944.

Similarly, the tariff value on imported RBD palmolein has been reduced to $898 per tonne from $902, while that on imported crude palm oil has been slashed to $857 per tonne from $877. In London, gold prices on Monday fell by 0.33 per cent to $1,241.80 per ounce, while silver dropped by 0.23 to $19.12 per ounce.

Domestic gold and silver prices remained down following weak global price trend.Gold is the second largest import item for India after petroleum. However, gold imports are expected to decline this year as government has taken several measures to curb shipments to address the high current account deficit.

According to the jewellers body, total gold imports may decline to below 500 tonnes this fiscal due to these restrictions, from 845 tonnes in the last fiscal.

Rupee up 12p to 62.56 per $
The rupee on Monday gained for the first time in three days and closed up 12 paise to 62.56 against the dollar on fag-end sales of the US currency.

After dropping 27 paise in the previous two sessions, the rupee’s strength was also linked to anticipation of spectrum auction inflows and a weak American currency overseas. The dollar index was down 0.14 per cent against a basket of six major currencies when local forex markets ended.

Fed taper fears drag Sensex 305 points to 11-week low

The benchmark Sensex slipped about 305 points to end at its lowest level in over 11 weeks on Monday on worries that sluggish growth in India and China would be further hit by the recent cut in US monetary stimulus.

Selling by foreign funds amid downward revision of GDP growth rate for the year ended 31 March by the government On Friday, also kept the domestic market under pressure. The BSE 30-share barometer resumed lower and languished in the negative terrain throughout the day, before settling at 20,209.26, a fall of 304.59 points or 1.48 per cent. This was its weakest close since 20,194.40 on 13 November, 2013.

The BSE index has fallen for the sixth day in seven. In the 30-share Sensex, 25 constituents ended in the red.

‘HDFC, Infosys, ICICI Bank and Tata Motors were some of the major losers. Global markets were also trading in red and dampened market sentiment. Weaker data from China triggered selling pressure in metal stocks,’ said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio. Overall, 11 out of 12 BSE sectoral indices closed with losses. Only the healthcare index ended with gain.

Investors seemed to ignore data that showed India's manufacturing sector in January expanded at the strongest pace in the past 10 months. Fund managers said they were worried that the US Federal Reserve's decision to further cut monetary stimulus by $10 billion per month will tighten capital inflows into India.

Metal stocks suffered heavy losses on weak Chinese data. Realty, auto and banking counters continued to be the receiving end due to rise in key lending rates by the central bank last week, said traders.
Next Story
Share it