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As expected, the gold buying festival of Akshaya Tritiya on Tuesday was better than last year for jewellers, though not as much as some had thought. The trend till evening suggested 10-15 per cent higher footfall. In places like Chennai and Kolkata, however, late evening reports suggested higher footfalls.
Somasundaram P R, managing director (India), World Gold Council said, “Gold buying sentiment is much more positive this time, due to lower prices — almost 10 per cent lower — and no restrictions on import.” In Mumbai, Zaveri Bazar gold closed on Tuesday at Rs27,010 for 10 gram, which was Rs29,970 on May 2, 2014, an Akshaya Tritiya day.
Last year, GFMS Thomson Reuters estimated gold sales on the day at 27 tonnes. “We estimate nationwide gold sales between 30 and 35 tonnes today, a 10-15 per cent rise from the same day last year,” said Ashok Minawala, former chairman of the All India Gems & Jewellery Trade Federation.
“Consumers were holding fresh investment in gold on hopes of an import duty cut but that expectation has receded and prices are also 10 per cent lower compared to a year ago and around its bottom, which consumers are using as an opportunity to accumulate gold,” said R K Sharma, chief executive officer, P C Jeweller, a Delhi-based retailer with 50 showrooms and presence in 17 states.
In the southern market, especially in Bengaluru, jewellery sales were estimated as likely to rise 20 per cent by the end of the day.
“Overall, sales are good this year. In the first half of the day, sales were up by 10 per cent which seems to be the trend. Normally, sales see a sharp boost in the later half. If the current trend continues, overall sales will show a jump of 20 per cent this year,” said Vinod Hayagriv, managing director, of C Krishniah Chetty & Sons, a Bengaluru-based 140-year-old jewellery retailing company.
What can affect the sales chart for Akshaya Tritiya buying could be rural demand. In several parts, unseasonal rain and erratic weather has affected the sentiment. Somasundaram of WGC said, “At certain pockets in the rural market, sentiment has been muted.”
