Jewellery stocks are back in focus after a lacklustre run over the past few months. Concerns over surging gold prices had weighed on sentiment, but the sector has staged a sharp rebound over the past week, with select stocks rising as much as 20%. Companies are optimistic about the March quarter, with high gold prices expected to aid revenue growth despite softening volumes. Expansion plans and rising transaction values remain key growth drivers.
ET Bureau noted that retail names like Titan Company and Kalyan Jewellers among others have recorded notable gains over the past week, outperforming the broader Nifty 50. As gold prices continue to swing, the industry walks a fine line between margin expansion and demand moderation, but upcoming festivals and wedding season could further boost sentiment.
