Shares of Jewellery companies were trading on mixed note on the Bombay Stock Exchange (BSE) in the afternoon session on Dhanteras. Hindus generally believe that buying gold or jewellery on the festival of Dhanteras and Diwali is auspicious. The buying of gold and other valuables such as ornaments and gemstones are believed to bring wealth and prosperity.
Among listed jewellery and ornament manufacturing companies, Titan Company, Atlas Jewellery, Rajesh Exports were among top gainers, while PC Jeweller, Thangamayil Jewellery, Tribhovandas Bhimji Zaveri and Uday Jewellery Industries were notable losers.
Titan Company was among the top performer among jewellery stocks, gaining as much as 1.13 per cent to hit a 52-week high of Rs 1,389.85 in opening deals on the BSE.
Atlas Jewellery rose 1.98 per cent to quote ay Rs 12.85, while Rajesh Exports surged 0.68 per cent to Rs 675.10 on the BSE.
On the flip side, shares of PC Jeweller, Thangamayil Jewellery, Tribhovandas Bhimji Zaveri and Uday Jewellery Industries tumbled upto 5 per cent on the BSE.
Meanwhile, gold and silver were trading flat in domestic commodity markets on Friday on tepid demand by jewellers at spot markets as uncertainty on the global front kept traders undecided. MCX Gold (December) futures were down 0.09 per cent to Rs 38,319, while MCX Silver (December) futures were up 0.23 per cent at Rs 46,100.
Gold demand has been muted this festival season. In fact, sales were 20 per cent lower this Dusshera compared to previous year, while overall gold imports were down 12 per cent this year.
With gold prices hovering near Rs 38,000 per 10 gm mark, down from last month’s record high of about Rs 40,000 per 10 gm, demand for gold is likely to rise this festive season due to discounts offered by jewellery chains. However, the gold price has risen sharply compared to Rs 32,000 on Dhanteras last year.
Although elevated prices will remain a point of concern, Dhanteras, Diwali festival and wedding season account for a major share of the annual revenue of jewellers across India. Jewellers pan-India have offered a wide array of discounts and promotional offers this season, which will likely offset higher prices leading to higher retail sales volume.