Mumbai: Bolstered by hopes of robust demand in the ongoing festive season, shares of jewellery retailers, including Tribhovandas Bhimji Zaveri, have given as much as 34 per cent higher returns to investors so far this month. (Agencies)
Market experts attributed the rally in these stocks to the rising gold prices and hopes of increase in demand during the ongoing festival season.
Sales generally picks-up during the festival season and since this would help in earnings, the stocks are moving higher, an expert said.
Tribhovandas Bhimji Zaveri (TBZ), which debuted on the bourses in May this year, saw the biggest jump in its share price, surging 33.73 per cent so far this month. The company's scrip also touched its 52-week high of Rs 210.90 on Monday.
"The ongoing festive season fervour is catching investors' interest. Also, the positive sentiment in the market is helping these stocks. Rising gold prices too, are expected to help earnings of these companies," Unicon Financial Solutions CEO Gajendra Nagpal said.
Shares of Shree Ganesh Jewellery House soared 29 per cent, while Thangamayil Jewellery shot-up by 18.44 per cent.
Among others, Goenka Diamond shares zoomed up by 27.63 per cent, while Vaibhav Gems (17.43) per cent, Gitanjali Gems (13.85 per cent) and Titan Industries (6.57 per cent) showed a rise.
According to Paras Bothra of Ashika Stock Broking, "Jewellery stocks are seeing heavy buying interest because of the ongoing festivities which is considered auspicious for buying gold. Demand picks-up during this period which builds a positive sentiment for gold related scrips".
Currently, gold is trading at Rs 31,400 per 10 grams.
In the broader market, the BSE benchmark Sensex saw flat trade in the period under review, falling 0.16 per cent.
Mumbai: Bolstered by hopes of robust demand in the ongoing festive season, shares of jewellery retailers, including Tribhovandas Bhimji Zaveri, have given as much as 34 per cent higher returns to investors so far this month.