Jewellery stocks trade lower on Dhanteras, PC Jeweller drops by 5.6 pc
Mumbai (Maharashtra) [India], Oct 25 (ANI): Shares of jewellery companies traded lower on Friday as gold demand remained subdued during Dhanteras, the first day that marks the festival of Diwali in India.
ANI
Oct 25, 2019 14:38 IST
Mumbai (Maharashtra) [India], Oct 25 (ANI): Shares of jewellery companies traded lower on Friday as gold demand remained subdued during Dhanteras, the first day that marks the festival of Diwali in India.
Gold prices hovered around Rs 38,500 per 10 grammes. Dhanteras is considered as an auspicious day to make new purchases and many Hindus believe that investing in yellow metal will bring prosperity.
Gold is also considered a good hedge against inflation globally, especially in the time of economic slowdown and trade wars.
At 2:15 pm, shares of PC Jeweller were trading 5.67 per cent down at Rs 32.45. Tribhovandas Bhimji Zaveri edged lower by 5.09 per cent at Rs 48.50 while Titan lowered by 2.41 per cent to Rs 1,34.50 per share.
Rajesh Exports, the world's largest manufacturer of gold products, slipped by 0.09 per cent at Rs 673.75 per share.
From an investor's perspective, gold returns in the past five years have been around 7 per cent CAGR (compound annual growth rate). At the same time, equity returns for the same period have ranged between 12 and 15 per cent.
"Therefore to reap returns from gold, one needs to position ahead of the uptick and move out as it peaks out," said Joseph Thomas, Head of Research at Emkay Wealth Management.
"If the rupee remains weaker from here and if current gold price levels in international markets are sustained, then domestic gold prices will remain well supported even at the current levels," he said.
However, fears of a global economic slowdown, continuing trade and tariff war between the United States and China, and geo-political risks could help the price of gold to sustain at higher levels. (ANI)
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