Shares of Titan Industries today fell by over 13 per cent, erasing over Rs 2,500 crore investor wealth, on massive selling amid concerns that restrictions put by RBI on gold imports will hit business prospects.

Titan Industries ended the day 10.86 per cent lower at Rs 236.40 on the BSE after falling 14 per cent to Rs 228 in intra-day trade. At the NSE, the stock settled 13.45 per cent down at Rs 229.10, near day’s low levels.

In terms of market capitalisation, Titan currently stands at Rs 20,987 crore compared to Rs 23,543 crore yesterday.

Since June 4, when the RBI imposed more restrictions on gold imports, the stock has lost 16 per cent.

“Jewellery stocks took a hit with Titan Industries losing 14 per cent today amid rupee weakening which raised concern over the growth of the sector,” said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Limited.

Meanwhile, in a filing to the BSE, Titan Industries today said that it has been clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100 per cent cash margin.

The company said it has had discussions with RBI officials to obtain clarifications on certain aspects of the notification issued on June 4, 2013.

It has also been clarified that credit of any kind from suppliers or bullion banks for import of gold for domestic use is prohibited, Titan said.

This also affects import of gold through all non consignment routes like gold on lease/loan, it said.

The Reserve Bank had last week extended the restrictions on gold import to other agencies in addition to banks, a move aimed at curtailing demand for the precious metal for domestic use amid widening current account deficit.

Meanwhile, the stock market also saw heavy selling with the BSE benchmark Sensex ending the day at 19,143, down 298.07 points.

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