Gems and Jewellery shares rally on hopes of higher demand in festive season

Shree Ganesh Jewellery House, Gitanajli Gems, Titan Ind, TBZ, Thangamayil Jewellery and Renaissance Jewellery have rallied up to 10% on the BSE.

Shares of companies engaged in gems and jewellery business have rallied on back of heavy volumes in otherwise weak market on hopes of higher demand in festive season.

Shree Ganesh Jewellery House, Gitanajli Gems, Titan Industries, Tribuhovandas Bhimji Zaveri (TBZ), Thangamayil Jewellery and Renaissance Jewellery have rallied up to 10% on the BSE compare tot 0.34% fall in the benchmark Sensex at 1127 hours.

According to Bloomberg report, gold imports by India, the world’s largest buyer, are set to climb for the first time in six quarters as a decline in domestic bullion prices stokes jewelry and investment demand ahead of major festivals.

Overseas purchases may jump to as much as 200 metric tons this quarter (October-December 2012) against 157 tons in the fourth quarter of 2011, the report suggest quoting Bachhraj Bamalwa, chairman of the All India Gems & Jewellery Trade Federation.

Among the individual stocks, TBZ (up 10% at Rs 200) and Titan Industries (up 1.4% at Rs 282) are trading at their lifetime highs on the BSE.

Thangamayil Jewellery and Renaissance Jewellery have surged 9% each at Rs 228 and Rs 59.70 respectively, while Shree Ganesh Jewellery House up 8% at Rs 118 and Gitanjali Gems by 6% at Rs 403.