Jewellery Companies Gain On Hopes Of Rise In Sales During Festive Season

With the festive season being a fortnight away, it seems to have brought some cheer to the jewellery sector with most of the companies showing rise in sales since last month. The jewellery makers in the country are all ready to cash in this season. Shares of some jewellery stocks have escalated up by 20%. Buying gold is a popular activity and investors expect to get high returns on the yellow metal.

In a volatile market today, the investors are cashing on the robust demand of jewellery companies which usually rises during the big festive season. Going by the records, jewellery stocks have shined due to the investor sentiments and we have seen better volumes for these stocks. Adding to that, to some extent stable rupee has abetted to keep the domestic gold price under check. Also, the recent visit of Prime Minister Narendra Modi has led investors to expect some positive announcement with respect to gems and jewellery sector. This has reflected to the rising prices of these stocks.

Tracking the momentum of the individual shares, this rally was led by PC Jewellers which is currently trading at Rs 254, up by 18%; followed by Shree Ganesh Jewellery which was trading in green and was up by 14% at Rs 33. Tribhovandas Bhimji Zaveri was trading at Rs 178, up by 10%. This was followed by Gitanjali Gems selling at Rs 73, up by 6%. Titan Industries also gained 3% and is currently trading at Rs 396.