MUMBAI (Commodity Online): Will the coming festival give India’s jewellery business a much-needed boost? It seems so with Holi and Gudi Padwa giving good business to jewellers in the country.
India’s bullion markets witnessed increased sales during Holi and Gudi Padwa and retail gold buying surged this week as part of the festivals.
On Gudi Padwa sales soared in Mumbai, Delhi, Kolkata and Ahmedabad especially on coin front.
Gold had struck a two-week low of $1,098.25 an ounce on Friday, but has since inched higher as concerns about European sovereign debt persisted, and trading was range-bound ahead of an interest rate verdict in the United States.
India, the world’s largest consumer of gold, celebrates Gudi Padwa in Maharastra and Ugadi in Karnataka, which marks the onset of a new year and considered auspicious for gold buying.
Wholesale demand was slack as banks, the primary dealers of bullion, were shut for the festival holiday in Mumbai.
Meanwhile, gold jewellery business is expected to grow by up to 30 per cent during Akshaya Tritiya, a festival considered auspicious for buying the metal, against the year-ago period on increased consumer confidence.
Eight-ten per cent growth in gold jewellery business is expected for the south Indian region, while 18-20 per cent for branded and diamond jewellery.
Preparing for the festive season, which will begin with 'Akshaya Tritiya' in May, the South India Jewellery Show (SIJS) is organising a three-day business-to-business exhibition from March 20.
It is expected to see participation from 1,000 retailers from across the country, predominantly from South India.
