Jewellery-related stocks tanked as much as 16 per cent in Monday’s trade, as gold and silver prices jumped amid the West Asia conflict. Mostly, a rise in precious metals poses headwinds for jewellery stocks, as an increase in prices could lead to a decrease in jewellery demand and weak margins.
Precious prices jumped as investors sought shelter in safe havens after the US and Israel attacked Iran over the weekend, adding to worries for equity investors.
On the Multi-Commodity Exchange (MCX), around 11:25 AM, gold April futures were trading 3.2 per cent higher at ₹1,67,299 per 10 grams. Silver May futures were also up 3 per cent at ₹2,91,143 per 1 kg.
US President Donald Trump said the forces sank nine Iranian naval ships and that combat operations would continue until all objectives were completed, according to Bloomberg.
Analysts’ view
In the current scenario, the sentiment towards jewellery stocks is a mix of high-performance optimism coupled with caution due to volatile gold prices, said Kruttika Prabhudesai, research analyst, Mirae Asset ShareKhan.
“In the jewellery space we prefer Titan Company due to its leadership position and multiple growth drivers. The company continues to outperform other branded players driven by its brand recall, exchange program, focus on international expansion and other initiatives,” said Prabhudesai.
She added: With natural diamond prices fluctuating and younger consumers seeking affordability, its recently launched lab-grown-diamond brand – beYon – will help Titan to capture the everyday luxury market without diluting Tanishq’s premium heritage status. The non-jewellery business is also scaling up well and will contribute to growth in the medium term. Further, market share gains, shift from unbranded to branded and network expansion will be additional drivers.
According to Ponmudi R, CEO of Enrich Money, MCX Gold futures are trading in the ₹1,65,000–₹1,70,000 range after consolidating post the sharp correction from all-time highs.
For silver futures, he said, “The long-term bullish framework remains firmly intact, key support is placed at ₹2,50,000–2,70,000. A sustained hold above this region could trigger recovery toward ₹3,20,000–3,30,000. Dips toward strong support zones may offer accumulation opportunities for positional traders, though a decisive breakdown below these levels could accelerate downside pressure.”
Disclaimer: The views and investment tips expressed by the brokerage in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.
On the Multi-Commodity Exchange (MCX), around 11:25 AM, gold April futures were trading 3.2 per cent higher at ₹1,67,299 per 10 grams. Silver May futures were also up 3 per cent at ₹2,91,143 per 1 kg.
