Shares of companies engaged in gems and jewellery business have continue at their upward march and trading higher by up to 20% on the BSE on hopes of higher demand in coming months.
Vaibhav Gems, C Mahendra Exports, Shrenuj & Co, Thangamayil Jewellery, Tribuhovandas Bhimji Zaveri (TBZ), Shree Ganesh Jewellery House and Renaissance Jewellery are trading higher by 6-20% on the BSE.
According to All India Gems & Jewellery Trade Federation chairman Bachhraj Bamalwa, the overseas purchases may jump 27.4% year on year to as much as 200 metric tons in December 2012 quarter.
“Gold imports by India, the world's largest buyer, are set to climb for the first time in six quarters thanks to a decline in gold prices and higher demand seen in festive season,” Bloomberg report suggests.
"Overall volumes are expected to recover in second half of FY13 (22% higher wedding dates in December 2012 quarter) and the company is maintaining momentum of its retail expansion across key markets" Shrikant Zaveri, chairman and managing director, of TBZ said in September 2012 quarter result press release.
Among the individual stocks, Vaibhav Gems has locked in 20% upper circuit at Rs 113 on the BSE.
C. Mahendra Exports has rallied 15% to Rs 94.80, followed by Shrenuj & Co (up 12% at Rs 66), Thangamayil Jewellery (up 11% at Rs 339) and Renaissance Jewellery (up 7% at Rs 70).