Indian jewellers' stocks shine on strong festive-quarter sales

Shares of Indian jewellery retailers surged after companies reported strong sales growth for the December quarter, driven by robust festive-season demand even as gold prices soared, reports Reuters.

Shares of Titan Company climbed 4.8 per cent to hit record high of 4,307.80 rupees after the company reported a 40 per cent jump in sales.

Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here.

Kalyan Jewellers and Senco Gold also jumped 3.7 per cent and 12.2 per cent, respectively, after their quarterly sales update.

Spot gold prices rose nearly 12 per cent during the quarter, to close out a calendar year in which the precious metal clocked its steepest rise since 1979, driven by geopolitical uncertainties, rate cuts and robust central bank buying.

"Higher prices did have an impact on volumes, but not on (overall) spending," said Dharmesh Kant, head of equity research at Cholamandalam Securities.

Kant added that jewellery companies also benefitted from higher cash in the hands of people as a result of fiscal policies like GST cuts and income tax relief, as well as low inflation.

Among other companies in the sector, PC Jewellers and Thangamayil Jewellery gained 5.2 per cent and 7.1 per cent, respectively, while Tribhovandas Bhimji Zaveri surged 10.5 per cent.

Titan Company was the top percentage gainer on the benchmark Nifty 50 index, while other stocks were among top gainers in the broader indexes.