Shares of as many as six jewellery firms, including Tribhovandas Bhimji Zaveri and Gitanjali Gems, rose to their highest levels in a year today on heavy buying in anticipation of robust demand during the ongoing wedding season.
Helped by increased purchases, shares of these firms have rallied up to 20 per cent on the National Stock Exchange (NSE) today.
Individually, Vaibhav Gems surged by 19.99 per cent to settle at its one-year high level at Rs 111.95 apiece on the NSE, while Tribhovandas Bhimji Zaveri and Thangamayil Jewellery also hit 52-week highs, with shares climbing around five per cent.
In addition, Gitanjali Gems hit a high of Rs 450, before settling at Rs 445 a piece, up 3.49 per cent from its previous close. Goenka Diamond and Jewels touched a new 52-week high of Rs 30.95, before closing at Rs 30.20 a share.
"Jewellery stocks are seeing heavy buying interest because of the hopes of higher demand on account of marriage season," Destimoney Securities MD and CEO Sudip Bandyopadhyay said.
Titan Industries, which owns Tanishq brand, hit a high of 292.90 on NSE, before settling down 0.14 per cent to 289.40, while the scrip of Shree Ganesh Jewellery House advanced 4.76 per cent to end the day's trade at Rs 116.60.
The positive sentiment in the jewellery stock counters may help Tara Jewels, whose public issue will hit the markets tomorrow.
According to market analysts, jewellery is a play on the consumption theme of Indians and consumers would continue buying precious metals.
However, shares of gold financing firms-- Manappuram Finance and Muthoot Finance-- fell by 1.55 per cent and 0.99 per cent on the NSE on reports that RBI has directed banks to not give loans to customers for purchase of gold in any form.
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