STOCK MARKET BSE NSE

Jewellery stocks trade lower on Dhanteras, shares of PC Jeweller drops by 5.6 per cent

Gold is also considered a good hedge against inflation globally, especially in the time of economic slowdown and trade wars.

Published: 25th October 2019 03:05 PM  |   Last Updated: 25th October 2019 03:05 PM   |  A+A-

Gold, Akshaya tritiya, jewellery

Image for representational purpose. (File photo |EPS)

By ANI

MUMBAI: 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.

ALSO READ: Gold jewellers pin hope on Dhanteras, Diwali for revival in demand

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.

ALSO READ: Paytm allows its customers to purchase gold jewellery using digital gold

"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)



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp