5 Tourism & Jewellery Stocks That Are To Benefit From Union Budget 2023

The Union Budget has been good for travel and tourism companies as well some jewellery stocks. Here are some companies that are likely to benefit positively from the budget recommendations. These are based on the latest report of Sharekhan post the Union Budget 2023.

Focus on domestic tourism to help stocks like Indian Hotels and Lemon Tree

According to the Sharekhan report, the Union Budget highlights revealed that there are plans to develop 50 destinations with details of all the relevant aspects to be made available on an app to enhance tourist experience. Among the recommendations include launch of 'Swadesh Darshan Scheme' for integrated development of theme-based tourist circuits. "Develop sector specific skilling and entrepreneurship to achieve the objectives of the 'Dekho Apna Desh' initiative. Set up a Unity Mall in each state for promotion and sale of their own ODOPs (one district, one product), and other handicraft products," Sharekhan has said in its report.

This is Positive for hotel companies such as Indian Hotel Cos, Lemon Tree Hotels and tourism operators such as Thomas Cook India.

Jewellery stocks to benefit

Jewellery (diamonds): To encourage indigenous production of LGD seeds and machines and to reduce import dependency, a research & development grant will be provided to one of the IITs for five years. Custom duty rate on LGD seeds used in manufacturing of rough lab-grown diamonds reduced from 5% to NIL. According to Sharekhan these budgetary recommendations would be positive for branded Jewellery companies such as Titan Company and Kalyan Jewellers currently focusing on increasing contribution from the studded Jewellery especially in the value segment.

Reduction in customs duty on gold dore

The budget 2023-24 saw reduction in custom duty on gold dore from 11.85% to 10%, on gold (including gold plated with platinum) unwrought or in semi manufactured forms or in powder form from 12.5% to 10% and on platinum, unwrought or in semi-manufactured form or in powder form from 12.5% to 10%.

Again, Sharekhan has said that this would be positive for companies like Titan and Kalyan Jewellery. Titan remains one of the preferred picks of broking firm Sharekhan.

Disclaimer

Stock have been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.