Bullion and jewellery markets strike enters eighth day
The Nifty now finds support at the 200 day moving average or dma of 5170 and resistence and the 20 dma of 5325.
Bullion and jewellery markets remained closed for eight straight on Saturday in various parts of the country to protest imposition of excise duty on unbranded jewellery and doubling of import duty on gold.
While jewellery showrooms kept their shutters down and sat on 'dharna' in several parts of the country, the All India Sarafa Association has written to Congress president and UPA chairperson Sonia Gandhi to look into the matter.
"We requested Sonia Gandhi as a last resort to save interest of nearly five lakh small dealers of gold jewellery, agitating against imposition of fresh taxes," said Sheel Chand Jain, President, All India Sarafa Association, which had earlier written a letter to Finance Minister Pranab Mukherjee demanding roll-back of the budgetary proposals.
Way back in 1981-82, a similar step of imposition of excise duty on gold jewellery was proposed which had to be withdrawn, added Jain.
Traders are protesting against the budget proposal imposing excise duty of one per cent on unbranded precious jewellery and doubling of customs duty on standard gold bars and coins to four per cent.
Market sources claimed that the industry has lost business of over Rs 10,000 crore in the last seven days, including Rs 750 crore yesterday on the auspicious new year of 'Gudi Padwa" in Mumbai alone.
A crowd of nearly 5,000 jewellers and their workers demonstrated in Karol Bagh in central Delhi -- the second largest market of bullion in the capital.
"The government may impose one per cent tax in the form of value added tax instead of levying excise duty," Karol Bagh Jewellers Association general secretary Rakesh Saraf said.
Retail jewellers brought under the excise net by the recent budget proposal were more worried and requested shifting of duty to another form.
"The imposition of excise duty will restrict business of small bullion traders by increasing paper work for maintaining records and tax formalities," said All India Jewellers Associations Forum President Sri Krishan Goyal.
However, jewellers in Kolkata and Chennai opened establishments for regular business.
