Jewellery stocks lose sheen amid renewed Covid-19 restriction, muted demand

Jewellery stocks: With gold prices bottoming out and demand facing headwinds, analysts expect volatility in the jewellery space to continue. That said, they stay optimistic on Titan & Kalyan Jewellers

An nearly 9 per cent YTD drop in the price of gold and sporadic lockdown amid fears of resurgence of Covid-19 cases has taken some sheen off gold and jewellery stocks. The initial public offer (IPO) by Kalyan Jewellers, too, analysts say, has not met with an overwhelming response as was expected.

“Despite the wedding season coming up, the demand may remain low compared to historical trends as state governments are gradually putting restrictions on the number of guests in social gatherings. The three-day IPO of Kalyan Jewellers is not getting the desired response, underscoring the bearish mood in the