Gems, jewellery shares up on govt moves

MUMBAI (Reuters) - Shares in gem and jewellery exporters rose as much as 6 percent on Friday after the government allowed agencies under the sector to import precious metals and extended tax exemptions and refunds for exporters.

On Thursday, Trade Minister Kamal Nath said Export Promotion Council for Gems and Jewellery, Diamond India Ltd , MSTC Ltd and STCL Ltd are allowed to import precious metals.

"Administratively this makes it a lot easier for people to handle gold imports and so from the operational point of view, it will really help the sector," said Neelesh Hundekari, Principal at consulting firm A.T. Kearney Ltd.

The government also extended tax exemption for 100 percent export oriented units to March 31, 2010 and the tax refund scheme for exporters until December 2009.

At 11.07 a.m., shares in Gitanjali Gems, which had risen as much as 6.63 percent, were up 2.86 percent at 39.55 rupees, while shares in Rajesh Exports were up 2.32 percent at 24.30 rupees, after rising to 25.25 rupees.

Source: http://in.reuters.com/