Mumbai : Jewellery may lose a bit of its lustre this Dhanteras compared to last year due to confusion over GST-compliance but jewellers have lined up discounts and freebies to lure buyers and get the sparkle back, according to market experts. India Bullion and Jewellers Association (IBJA) Director Saurabh Gadgil told PTI that the market sentiment is improving but it has not yet become buoyant.
“If the overall business remains same as the last year or goes marginally up by 5 per cent, we will be very happy,” added Gadgil, who is also PNG Jewellers Chairman and Managing Director.Postponement of salary, less than expected bonus, lack of clarity in removing jewellers from the Prevention of Money Laundering Act (PMLA) are some of the major issues that have dented the market sentiment this Dhanteras and Diwali, the festivals which generally see a lot of buying of precious metals, he added.
“Also, the slowdown in economy has contributed to the sluggish market sentiment,” Gadgil said. The footfalls will increase at stores during the festivals next week, he said, but the sale ticket size will be lower. Echoing a similar view, All India Gems and Jewellery Trade Federation (GJF) Chairman Nitin Khandelwal said there has been some relief for the maker players due to the government decision on the PMLA. However, due to less currency in the market the overall sentiment is dull, he said.
The momentum has started, but it is yet to pick up. There is less currency circulating in the market as an aftereffect of demonetisation announced last year. Because of this, there have been less buyers this year during Dhanteras and Diwali,” he added. The business this year is expected to be at par with last year or could even be lower, Khandelwal said.
Not so rosy
- Postponement of salary, less than expected bonus, lack of clarity in removing jewellers from the Prevention of Money Laundering Act (PMLA) are some of the major issues that have dented the market sentiment this Dhanteras and Diwali
- Putting gold and silver imports from South Korea in restricted list also caused disruptions in the market, market experts said
- However, demand for gold jewellery is likely to be better than last year
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)