Bolstered by hopes of robust demand in the ongoing festive season, shares of jewellery retailers, including Tribhovandas Bhimji Zaveri, have given as much as 34 per cent higher returns to investors so far this month.
Experts attributed the rally in these stocks to the rising gold prices and hopes of increase in demand during the ongoing festival season.
Sales generally pick up during the festival season and since this would help in earnings, the stocks are moving higher, an expert said.
Tribhovandas Bhimji Zaveri, which debuted on the bourses in May this year, saw the biggest jump in its share price, surging 33.73 per cent so far this month. The company’s scrip also touched its 52-week high of Rs 210.90 on Monday.
“The ongoing festive season fervour is catching investors’ interest. Also, the positive sentiment in the market is helping these stocks. Rising gold prices too, are expected to help earnings of these companies,” Unicon Financial Solutions chief executive officer Gajendra Nagpal said.
Shares of Shree Ganesh Jewellery House soared 29 per cent, while Thangamayil Jewellery shot-up 18.44 per cent. Among others, Goenka Diamond shares rose 27.63 per cent, while Vaibhav Gems climbed 17.43 per cent, Gitanjali Gems rose 13.85 per cent and Titan Industries moved up 6.57 per cent.
