Shares of Titan Industries soared by 8 per cent in the morning trade on the BSE today as the government allowed the company to import gold directly.
Shares of the Tata Group firm shot up to Rs 247 on the BSE. Later,however,it pared some of the gains and was trading at Rs 239.55,up 4.79 per cent at 1025 hours.
In a first instance of the government allowing an actual user from private sector to import gold directly,Tata Group firm Titan Industries has been given nod to bring the yellow metal from overseas market.
At present,only authorised agencies and public sector units like MMTC are allowed to import gold.
Titan had approached Directorate General of Foreign Trade (DGFT),under the Commerce Ministry,seeking licence for direct gold import.
In its application,the company had said it would help in saving one per cent of their operating cost and also it would get good quality gold.
The rally in the stock largely outperformed the sluggish broader market,where the BSE benchmark Sensex was trading at 17,393.63,down 10.57 points at 1025 hours.