Golden run

This sounds clichéd, but jewellery stocks had quite the golden run this year. Usually lurking in relative anonymity, the jewellery sector turned so attractive this year that three jewellery companies made their market debut, raising over Rs 900 crore between them.

Apparently, the Indian consumer was infallible, never mind Government action, spiralling gold prices, or inflation.

Prominent stocks — Titan Industries and Gitanjali Gems — soared over 50 per cent in the year to date. The lesser-known — Thangamayil Jewellery and Vaibhav Global — fired up more, doubling stock prices. Debutant Tribhovandas Bhimji Zaveri is up 87 per cent from its issue price. What helped was the rise in Indian gold prices, a result of the depreciating rupee, which boosted sales value even as underlying volumes dwindled.

Jewellers also banked on higher-margin diamond jewellery and a fall in diamond prices, both rough and polished, helped. Jewellers increased diamond lines with gusto, bringing out lower-priced collections.

So companies catering to the ever-faithful Indian consumer did better than export-heavy ones, such as Shree Ganesh Jewellery. Muted international gold prices and uninspiring demand in key export regions dampened the exuberance in their stocks.

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