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MUMBAI | FRIDAY, NOVEMBER 1, 2013
This Dhanteras Its Platinum And Diamond Instead Of Gold NEWS FLASH
BUSINESS
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Titan Q2 net up 3.59% at Rs 186.65 cr Bank of India Q2 net jumps two fold to Rs 622 cr Gillette India profit drops 39.02% at Rs 15.14cr Supreme Industries net up 10.37% to Rs 43.01 crore BoB Q2 net profit declines 10% to Rs 1,168 cr Dr Reddy's Lab Q2 profit up 69 pc at Rs 690 crore
By Mayura Shanbaug
H
igh gold prices are forcing jewellers and consumers to look for other alternatives this festive season. Fashion trends are changing from the yellow metal to diamonds and other metals like platinum, ahead of Dhanteras and Diwali. A recent survey done across 350 jewellery houses in various cities in India by industry body Assocham reveals that the jewelers in major cities like Delhi-NCR, Mumbai, Chennai, Ahemdabad, Kolkata, Dehradun are looking at unique mix of strategy to sell jewellery in the current fluctuating market conditions. The survey reveals that nearly 76% of Jewelers are focusing on
platinum-based diamond jewellery over the traditional gold and silver jewellery to tap the changing preferences of domestic consumers. “With gold prices rising, white gold, diamonds or platinum is the new trend among buyers.
There is an increasing focus for platinum jewellery in this festive seasons, said Delhi-NCR-based jewelers who owns a diamond jewellery brand. According to an estimate, the share of platinum and diamond jewellery in the overall gold jew-
ellery has increased significantly over the past one year and is likely to reach about 30-35 % of the total gold jewellery sales in the year 2015. The prices of the yellow metal had crossed Rs 32,000 mark during calendar year 2013. On the other hand, industry experts anticipate gold prices to continue fluctuating for some more time as the rupee remains weak against the US dollar. “The existing prices of platinum, however, offer great investment opportunities to the smart investor to jump on the investment bandwagon,� said D S Rawat, Secretary General ASSOCHAM. “With gold prices reaching astronomical highs, more and more Indian investors are now looking at diamonds and platinum as an equally lucrative investment opportunity,� he said.
Price Correction In Gold Ahead Of Dhanteras May Spur Buying O
n account a price correction just ahead of Dhanteras sentiment has turned a little positive. The earlier prediction that the rising demand amid tight supplies will push the prices beyond Rs 33,000 per 10 gram on Dhanteras had thereby spread gloom amongst jewellers and buyers. Like every auspicious day Dhanteras will see buyers coming to buy jewellery today,� said Sachin Kothari, Director, Bullion India.
“The price range may be between Rs 30,500 – Rs 30,700 per 10 gram which may push the sales up,� he said. According to the estimates, the festive demand for jewellery on ‘Dhanteras’ is expected to remain stable, but sale of coins and bars would see a decline by almost 50 % from the year-ago period. As per the trade data, gold prices rose by 20 per cent to Rs 32,485 per 10 grams on Dhanteras day in 2012.
Rates jumped by 37 per cent to Rs 27,130 per 10 grams on the festival day in 2011. In 2010, gold prices on Dhanteras day stood at Rs 19,740 per 10 grams. However, All India Gems and Jewellery Trade Federation Chairman Haresh Soni believes the, “Impact of high gold premiums will be there on prices on Dhanteras because supplies have dried up in the absence of imports in the last three months.
BUSINESS BRIEFS Vodafone India Puts IPO Plans On Hold
Vodafone India, the nation’s second-biggest telecom firm, has put on hold a planned initial public offering (IPO) over lack of clarity on rules around spectrum and cellular permits. “At this moment we have put that (IPO) on hold because we need first clarity about our licence extensions and the pricing of spectrum,� Vodafone India Managing Director and Chief Executive Officer Marten Pieters told PTI.
Stock Markets’ Daily Turnover Crosses Record Rs 5 Lakh Cr
Indian stock markets today witnessed a record daily turnover of over Rs five lakh crore, even as the benchmark Sensex missed its all-time intra-day high by a whisker. The BSE Sensex, however, managed to record an all-time closing high of 21,164.52 points. Yesterday, during intra-day trade, the Sensex rose to as high as 21,205.44 points, just 1.33 points away from its record high of 21,206.77 points scaled on January 10, 2008.
Maruti Tops Customer Satisfaction With Dealer Service
Country’s largest car maker Maruti Suzuki India (MSI) has topped customer satisfaction with dealer service for a 14th consecutive year, rated by market research firm JD Power Asia Pacific. According to JD Power Asia Pacific study, in a 1,000-point scale MSI had a score of 876, while the mass market average was 834. “Maruti Suzuki performs particularly well across all factors,� JD Power Asia Pacific said in a statement.
Govt Relaxes Outsourcing Norms For Manufacturing Units
Manufacturing units in SEZs can now sub-contract work for up to three years, instead of just one year allowed so far, as the government has relaxed the norms to help boost shipments from special economic zones. The request for relaxation came from large manufacturing units which have stated that the move would help facilitate manufacturing processes and augment exports.
FIIs Betting Big On FMCGs In July-Sept Quarter
Enthused by robust financial performance, foreign investors have increased their exposure to fast-moving consumer goods (FMCG) companies such as Zydus Wellness, Bajaj Corp and Britannia in July-September this year. On the other hand, domestic institutional investors (DIIs) were mostly sellers in the consumer sector.
Markets Rightly Priced By Roop Karnani
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o great exuberance in the markets as they touched a new high yesterday, leading up to Diwali. But there is a tinge of optimism. With the earnings season more or less behind us, and no negative surprises there, we should be looking ahead to a phase of consolidation in the markets All seems to be quiet on the currency front. Inflation is the only sore point preventing interest rates tending down and markets tending up. But we hear from experts again and again that the good monsoon will bring food prices to manageable levels as also a pickup in global economy will incrementally increase exports and that would help manufacturing and the services sector grow. The real driver of markets, economy and growth will be a decisive result in the forthcoming elections. First, the immediate interest would be elections in the 5 states post-Diwali. Though these states go to polls in November, the results will be declared on December 8. During this period, one will witness a lot of exit polls and psephologists trying to hone their skills at getting predictions right. The Stock markets will have their own assessment and will react pos-
itively or negatively, but will move within a range which could move up or down, depending on outcome on December 8. This will be followed by the Q3 results in January, which will help stabilize the markets and will give pointers as to which sectors could lead the next rally. Let’s look back at the year gone by – while the Sensex and Nifty have not done much except grow in single digits those who invested in scrips like HCL Tech, TCS, ITC, Dabur, and HUL have seen hand-
some gains anywhere from 50% to 75%, the highest being in HCL Tech. These still remain good stocks to bet on and one could add select private banks to them like Axis Bank, Yes Bank, Kotak Bank and Indusind Bank. A scrip like Tata Global Beverages could also be added to balance one’s portfolio. While bank stocks have rebounded 10 to 30% from their recent lows, and have potential to lead the next leg of the rally, consumption stocks like Tata Global could appreciate multiple times over a longer time frame of 2 to 3 years. It is time to build up a strong portfolio which has both defensives like IT and consumer bellwethers, along with banking and a few other stocks with potential to appreciate sharply, but make sure that they are backed by sound managements. The real big event would be the Lok Sabha elections of May 2014 and just as political parties are gearing up to battle it out, investors also should be ready with a war chest to track both markets and political developments and start building a strong portfolio. At the same time they should not over-commit themselves and remain partly in cash, say 20 to 30% to be able to buy at lower levels in case of an uncertain outcome.
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