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Stocks of jewellery companies jumped up to 20 per cent on Monday, owing to expectations the fall in bullion prices would lead to a sharp jump in retail sales during the coming festive season.
Shares of Delhi-based P C Jeweller soared 20 per cent to close at Rs 258.25 apiece, while those of Shree Ganesh Jewellery rose 15 per cent to Rs 33.29. The Gitanjali Gems, Asian Star and Rajesh Exports stocks rose 6.55 per cent, six per cent and 4.61 per cent to close at Rs 73.25, Rs 1,325 and Rs 153.19, respectively.
“The fall in bullion prices has restored confidence among local jewellers and exporters. They are hoping sales will be boosted in the coming season. Normally, jewellery demand from foreign importers rises in case of a fall in bullion prices,” said Pankaj Parekh, vice-chairman of the Gems and Jewellery Export Promotion Council.
“Jewellery demand from domestic consumers, too, rises during the festive season. We expect jewellers’ sales in local markets to rise during the coming Dussehra, Diwali and wedding season and foreign markets during Christmas, New Year and Mothers’ Day,” said Parekh.
Gold and silver prices are at multi-year lows, as investors seek respite in other asset classes, including equities, leading to huge sell-off in commodities.
