Jewellery stocks were under pressure in Monday's trade, with most of the stocks declining as gold prices fell sharply in the domestic market.
The decline came amid a broader sell-off in precious metals. Gold prices on the MCX fell more than Rs 3,000, pushing the October futures contract below the Rs 1,50,000 mark. Silver also came under heavy pressure, slipping more than Rs 7,000 during Monday's session.
The fall in bullion prices came as rising oil prices intensified inflation concerns and strengthened expectations of further interest-rate hikes by the US Federal Reserve.
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Also Read: Gold Loses Shine: Yellow Metal Prices Fall By Over Rs 3,000 To Below Rs 1,50,000
Senco Gold Leads Jewellery Stock Decline
At around 2:14 p.m., shares of Senco Gold Ltd. fell 5.65% to Rs 312.40, making it the biggest decliner among the jewellery stocks tracked. The stock touched an intraday low of Rs 311.30 until now.
BlueStone Jewellery and Lifestyle Ltd. declined 3.5% to Rs 780.25. The stock also came under pressure after Accel India III (Mauritius) Ltd. disclosed the sale of 28 lakh shares, or 2.5% of the company's stake, through the open market on Sept. 24. Following the transaction, Accel India's holding fell to 5.58% from 8.08%.
At 2:33 PM, PC Jeweller shares were trading at Rs 9.45, down 8.25% or Rs 0.85 during the session. The stock opened at Rs 10.45, briefly rose to an intraday high of Rs 10.46, before falling to a low of Rs 9.32, while Thangamayil Jewellery Ltd. declined 2.42% to Rs 5,010 at around 2:35 p.m. Shares of Kalyan Jewellers India Ltd. fell a little over 2% to Rs 561.5.
In contrast, Sky Gold And Diamonds Ltd. gained 0.6% to trade at Rs 798 apiece on the NSE, bucking the overall jewellery stock trend of the day.
Why Are Jewellery Stocks Under Pressure?
Jewellery stocks came under pressure even as the festive season is around the corner, indicating a sharp fall in domestic gold prices, which is further driven by international bullion prices.
Rise in crude prices, along with intensified inflation concerns and strengthened expectations of further interest-rate hikes by the US Federal Reserve, have been weighing heavily on the yellow metal and, in turn, on the jewellery stocks in India.
Also Read: Silver Prices Crash By Over Rs 7,000, White Metal Slips Below Rs 2,28,000
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