Jewellery retailers extend Monday's gains on likely pick up in sales

Shares of six jewellery companies rose by 1.01% to 4.49% at 12:18 IST on BSE, with these stocks extending Monday's gains triggered by expectations of pick up in jewellery sales in the upcoming festive season.

Shree Ganesh Jewellery House (up 2.7%), Tara Jewels (up 4.24%), Tribhovandas Bhimji Zaveri (up 2.46%), Thangamayil Jewellery (up 4.49%), Titan Company (up 1.16%) and PC Jeweller (up 1.01%) edged higher. Gitanjali Gems (down 1.64%) and Rajesh Exports (down 1.24%) declined.

The S&P BSE Sensex was down 82.28 points, or 0.3% at 27,124.46.

Jewellery retailers had logged robust gains on Monday, 22 September 2014. Select gainers included Gitanjali Gems (up 6.55%), Titan Company (up 2.33%), Tara Jewels (up 9.93%) and PC Jeweller (up 19.53%).

 

Meanwhile, gold and silver prices were trading lower today, 23 September 2014. At India's MCX, gold for delivery in October 2014 was down Rs 76, or 0.29%, to Rs 26,512 per 10 grams. Silver for delivery in December 2014 was down Rs 403, or 1.02%, to Rs 39,170 per kilogram.

The recent fall in gold and silver prices augur well for jewellery stocks as it could trigger surge in demand ahead of the year-end festivals like Diwali, Dhanteras and wedding season.

Shradh, a cultural period in India deemed inauspicious for buying precious metals, is ending on 24 September 2014, which can prompt some pent up buying in gold.

Meanwhile, some of the days considered auspicious according to the Hindu calendar 2014 for gold purchases in India are, 16 October 2014 - Gurupushyamrit, 21 October 2014 - Dhanetras, 23 October 2014 - Laxmi Pujan, 24 October 2014 - Diwali, 25 October 2014 - Bhaubij Festival, 13 November 2014 - Gurupushyamrit and 10 December 2014 - Pushyanakshatra.

Typically, the wedding season runs from November to February in India.

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