Gitanjali Gems was the big loser on the BSE yesterday and had hit the 20% lower circuit. Today also the story is the same – the stock has plunged 20% on the lower circuit at Rs.324.30. The lower circuit was hit the moment is opened the day for trading. Almost 24 lakh pending sell orders remained on the counter.

The stock seems to be in a state of free fall. With RBI and the Govt going all out to try its level best to curb import of gold, demand is already taking a hit and this fall in demand is expected to impact the earnings of jewellery companies like Gitanjali. Gold imports have as such started falling and in the current Q2, between July and Sept, imports are expected to more than halve to 150 tonnes v/s the estimated demand of 350 tonnes in current Q1.