Should you buy stocks of jewellery retailers this Dhanteras?

The Jewellery sector is gearing up for Dhanteras and Diwali. It is expecting to benefit from pent-up demand during the festivals. So, is it time to add stocks of jewellery retailers to your portfolio?

Expectations of strong sales this festive season have led to a sharp run-up in shares of jewellery retailers in the past few months. 

For instance, shares of Kalyan Jewellers and PC Jeweller have rallied up to 380% so far in fiscal 2023, while Titan is up 3% as compared to a fractional decline in the BSE Sensex during this period.

Going by past trends, jewellers could see bumper sales this Dhanteras riding on high pent-up demand after a Covid-19 lull, and softening in gold prices.

As per HDFC Securities, the first 10 festive days have already clocked 20% jewellery sales volume growth. 

Analysts remain