Ahead of festive season, gold buyers throng jewellery shops on Akshaya Tritiya day

Written by PTI | Mumbai | Updated: May 3 2014, 14:03pm hrs
AkAkshaya Tritiya is considered an auspicious day to buy gold. PTI
Retailers and jewellers witnessed robust demand for gold on Akshaya Tritiya today, particularly in South India where business was 10-15 per cent higher than last year's.

Akshaya Tritiya is considered an auspicious day to buy gold.

"According to our reports, in the southern region there has been a lot of footfalls (in stores) and activities since the last two days. In the north and west, the response is expected to be better in the evening when people will throng markets ....," World Gold Council Managing Director (India) Somasundaram P R told PTI.

Overall,, the sentiment on the festival day was positive and reports from core centres indicate robust business, he added.

All India Gems & Jewellery Trade Federation Chairman Haresh Soni said business was 10-15 per cent higher in the southern region compared to last year's. Other centres -- east, north and west-- saw steady sales.

"The sales of gold bars and coins are low this year from compared to the same day last year. This year people are going more for low denomination jewellery, which is a good trend for the industry," he added.

Gitanjali Gems Chairman and Managing Director Mehul Choksi said the demand was robust today and the business is expected to be similar to that of last year.

He added that overall the sentiment was subdued mainly on account of the Government policies restricting gold imports and ongoing general elections.

Tara Jewels Executive Director and CEO (Retail) Vikram Raizada said reports received from the company's stores indicate good business, especially in the north and west.

"Looking at the footfalls, we are expecting about 20-25 per cent growth in sales this Akshaya Tritiya, compared to the last year. Sales are mainly in diamond and lightweight jewellery," he added.

Manu Bhai Jewellers Director Samir Sagar said the footfalls are robust across all its stores and people are going for generic and lightweight items.

"This year we are fortunate to have Akshaya Tritiya fall over two days. Yesterday, being a public holiday, saw a lots of footfalls. We expected a similar trend today also," he said.

Moreover, this year the marriage season begins just after Akshaya Tritiya, so there is a pick-up in demand for wedding jewellery compared to the last year, Sagar said.

"Looking at the positive trend in demand, we are expecting about 25-20 per cent growth in sales this year," Sagar added.

Leading commodity exchange NCDEX also received favourable response to its GOLDHEDGE contract, recording a volume of Rs 34.5 crore (140 kg), till 2.30 pm.