Jewellery stocks were buzzing in the trade as the 42-days-long festive season began with Navratri on Thursday, October 7. Investors pinned hopes on the festive season as Titan posted a strong, across-the-board recovery in demand after the second wave of COVID-19 infections.
Titan Company shares surged as much as 11 percent to a 52-week high of Rs Rs 2,378 on BSE as its revenue jumped 78 percent year-on-year in the second quarter of the current financial year.
Other jewellery stocks also jumped thanks to the momentum created by Titan. Kalyan Jewellers surged almost 13 percent after the company reported a 60 percent growth in revenue from its India operations.
Tribhovandas Bhimji Zaveri shares spiked as much as 17 percent to Rs 94.35. Thangamayil Jewellery shares also hit a 52-week high Thursday, rising over 11 percent.
At the time of publishing this report, Titan was up over 10 percent at Rs 2,365, and Kalyan 13.6 percent at Rs 80.4. TBZ Jewellers was up 14 percent at Rs 91.85 while Thangamayil was up nine percent at Rs 1,226.
"After two years of decline, jewellers are expected to see double-digit growth in revenues this fiscal. Increased spending on wedding and festive jewellery might support sales. Also, stable gold prices and recovery discretionary spending will see gold jewellery sales growing," Rahul Sharma, co-founder of Equity99, told CNBCTV18.com.
On MCX, the December contract of Gold futures quoted at Rs 46,918, marginally higher from its previous close.
"Increased footfalls on the back of strong pent-up demand across key markets and continued robust offtake towards have marriages have been key drivers behind the consumption growth in recent months," rating agency ICRA said in a report.
And it expects the growth to continue for the rest of the financial year. ICRA said the industry can grow by over 10 percent in FY22. This could be further backed by "strong festive demand and improving consumer sentiment on the back of increasing vaccination coverage."
The organised players could witness stronger growth, it said, driven by store expansion and shift towards hallmarked products.
(Edited by : Sandeep Singh)
First Published: IST