Jewellery stocks rally about 14% as gold prices fall sharply

NEW DELHI: Gems and jewellery stocks rallied 17 per cent in trade on Monday amid a continous fall in the yellow metal prices overseas.

Shree Ganesh Jewellery rose 17.53 per cent, while Tribhovandas Bhimji Zaveri surged 14.33 per cent. Gitanjalli Gems advanced 16.85 per cent. PC Jewellers and Tara Jewels too gained over 4 per cent each in intraday trade.

Here's how the stocks ended the day:

Shree Ganesh Jewellery: 11.79 per cent higher

Tribhovandas Bhimji Zaveri: 9.37 per cent higher

Gitanjalli Gems: 13.71 per cent higher

PC Jewellers: 3.17 per cent higher

Gold price plunged 4 per cent to its lowest in more than five years today as traders in the top precious metal consumer China were seen selling the yellow metal on hopes of rate hikes by the US Federal Reserve in the coming months. Bullion fell to as low as $1,088.05 an ounce - its weakest since March 2010.

At home, MCX Gold August futures slipped below the psychological level of Rs 25,000 per 10 grams. The yellow metal futures fell to their intraday low of Rs 24,970, the lowest since June 2013.

According to the tax authorities’ data, gold import during April-June quarter stood at 203 tonne, against 221 tonne during the corresponding period of the last fiscal. Value of imported gold was recorded at around Rs 46,000 crore, much lower than Rs 54,800 crore of last fiscal.

A fall in gold prices is expected to boost revenues for domestic jewellers in the forthcoming festive season. A drop in gold imports, on the other hand, has raised hopes that the government may further ease restrictions on the gold imports.