Jewellery sales in Dhanteras surged by up to 30 per cent, both in value as well as volume terms, belying fears of muted response due to high gold prices.
"There was a very positive sentiment among customers and footfalls were very high yesterday on Dhanteras, despite high gold prices. In terms of volumes and value, we saw 30 per cent sales growth compared to the same day last year," Gitanjali Gems' president Abhishek Gupta said.
Demand for heavy jewellery like 'jadau' and 'kundan' for the marriage season immediately after Diwali was more, he said.
"There was up to 50 per cent sales growth in diamond jewellery, mainly in the light weight category like rings, ear rings and pendants," he said.
Coins, he said, also did very well being always in demand, even during the off-season period, he said.
Mumbai Jewellers' Association vice-president Kumar Jain of UT Zaveri retail stores said that market sentiment was very high and there was very high footfalls far beyond expectations.
"We saw very good sentiment and sales in Zaveri Bazaar in Mumbai was brisk during Dhanteras. Footfalls this year was more than our expectations. We saw 30 per cent growth in sales in terms of volume," Jain said. Overall jewellery sales in Maharashtra was about Rs 750 crore on Dhanteras, he said.
Shree Ganesh Jewellery Head, Marketing, Rahul Singh said that sales more than doubled, as stores in northern and eastern region did extremely well.
"Expectation of gold prices rising further, attractive discount offers and the upcoming marriage season mainly boosted sales. We witnessed 75 per cent growth in overall sales," he said.
Kotak Mahindra Bank also achieved a 20 per cent growth in sales of coins. "Total quantity sold was 150 kgs compared to 125 kgs last year," Kotak Mahindra Bank Executive Vice President Puneet Kapoor said.
The demand was even across all denominations. However, as stocks were highest in the 5 and 8 gram category, sales were maximum in that category as well, he added.
Gold prices ruled at around Rs 32,000 per 10 gram in the national capital and Rs 32,100 in Mumbai, which is over 4 per cent higher compared to the previous week.
Local market gold prices are expected to firm up further during Diwali aided by a rise in global gold prices, Emkay Commodities research analyst Kunal Soni said.
"Gold's safe haven appeal increased after poor data of industrial production from Italy and France, as well as worries over the US fiscal cliff, besides an expectation of loose monetary policy, which may boost global gold demand," Soni said.
Gold for December delivery on the Multi Commodity Exchange (MCX) was 0.91 percent higher at Rs 31,643 after hitting a high of Rs 31,737 per 10 gram.