Business
Jewellery stocks outshine Nifty peers as gold buying picks up pace ahead of Dhanteras
Jewellery stocks outshine Nifty peers as gold buying picks up pace ahead of Dhanteras
About this update from Pc Jeweller Ltd.
Leading jewellers are experiencing strong demand during this festive season, with a notable surge in interest from millennial consumers. Many millennials are actively purchasing gold jewellery, particularly on the auspicious occasion of Dhanteras, contributing to the robust demand in the jewellery marketThe positive consumer sentiment is rubbing off on jewellery sector stocks, with counters like Kalyan Jewellers, Tribhovandas Bhimji Zaveri, Senco and PC Jeweller jumping up to 16 percent over the past week.Their 1-month returns are even more remarkable, reaching as much as 30 percent. For context, the biggest gainer in the Nifty50 pack during the month has been BPCL which climbed around 10 percent.Dhanteras, considered auspicious for buying gold and gold ornaments, will be celebrated on November 10 this year.Read: HDFC Bank falls out of analysts' favour as merger math spoils margin outlook“With the festive and wedding season around the corner, we are witnessing a positive sales momentum in the pre-Diwali season and expect it to be sustained till January 2024. Specifically for the occasion of Dhanteras, the robust pre-bookings have been showcasing signs of positive consumer sentiment,” said Ramesh Kalyanaraman, Executive Director – Kalyan Jewellers.This year, the industry is benefitting from the extended wedding season as it coincides with the auspicious occasion of Diwali and Dhanteras. The studded jewellery and heavyweight festive range continues to emerge as hot favourites this season, he added.“Furthermore, the revamped interest among younger, millennial consumers towards the yellow metal, has led to acceleration in demand momentum for traditional temple jewellery as well as polki and uncut jewellery pieces... As the industry gears up for a robust and bustling wedding season, we are optimistic about the positive sales momentum to continue till early 2024,” Kalyanaraman said.Several other jewellery retailers have also reported an increase in sales on the occasion of Dhanteras. This upturn in sales appears to be a common trend across the industry, indicating a positive festive season for the jewellery market.Gold and silver have witnessed sharp swings this year amid heightened geopolitical uncertainties, elevated interest rates as well as buying by global central banks.Gold reached near its all-time high of $2,070 per ounce at the start of this year and t...