Key Points
While gold has been treading a path of glory hitting fresh lifetime highs on a regular basis since the beginning of March, the performance of jewellery stocks have been less than inspiring..
A data on 18 jewellery stocks with a market cap of Rs 100 crore or more, analysed by ETMarkets, showed that 15 stocks have given negative returns of up to 19% in between March 1 and April 1 while just three of them have managed positive returns...
Gold prices on the MCX have shot up by 9.07% or Rs 5,722 per 10 gram since March hitting a lifetime high of Rs 69,487...
The underperformance comes on the back of strong rally in most stocks with four stocks giving multibagger returns in the past 12 months namely Kalyan Jewellers, Radhika Jeweltech, Radhika Jeweltech, Thangamayil Jewellery and Sky Gold...
Commodity analysts Anuj Gupta of HDFC Securities echoes similar sentiments, opining them that there will be no impact on consumption which is largely demand based.. Upadhyay of Master Capital Service advocates long term investment strategy in jewellery stocks with proven track record and should be picked to diversify portfolio...
