New Delhi | Jewellery stocks faced selling pressure for the third day running on Wednesday, with Sky Gold dropping over 11 per cent, amid fears of reduced demand due to import duty hikes.

The government on Wednesday hiked import duties on gold and silver to 15 per cent from 6 per cent as part of measures to curb inbound shipments of precious metals amid a rising import bill due to the West Asia crisis.

Shares of Sky Gold And Diamonds tumbled 11.11 per cent, Kalyan Jewellers dropped 6 per cent, Senco Gold tanked 4.30 per cent, PC Jeweller edged lower by 3.65 per cent, Tribhovandas Bhimji Zaveri declined 1.74 per cent, and Titan Company dipped 1.64 per cent on the BSE.

On Sunday, Prime Minister Narendra Modi made a clarion call for curbs on gold purchases, along with other austerity measures to save on foreign exchange.

The Finance Ministry, in a notification, hiked the social welfare surcharge (SWS) and the agriculture infrastructure and development cess (AIDC), effective May 13.

The duty hikes will raise the overall customs duty on gold to 15 per cent.

India is the world's second-biggest gold consumer after China. The imports are largely driven by the jewellery industry.