Jewellery stocks on Wednesday took a sharp hit and closed the day with up to 14 per cent losses following the government’s move to withdraw notes of higher denominations.
Shares of Tribhovandas Bhimji Zaveri slumped 14 per cent, Thangamayil Jewellery 12.05 per cent, PC Jeweller 9.19 per cent, Shree Ganesh Jewellery House 7.64 per cent on BSE.
Gitanjali Gems tumbled 6.55 per cent and Tara Jewels went down by 2.25 per cent.
“Jewellery companies will also get impacted as they see slowdown in sales,” said Kalmesh Rao, CEO, Kotak Securities.
Sentiment took a hit following the government’s surprise move to ban Rs 500 and Rs 1,000 currency notes in a bid to curb black money, triggering all-round selling, dragging down the key indices form their key levels.
The 30-share BSE benchmark Sensex ended with a loss of 338.61 points at 27,252.53 after falling 1,688.69 points during the day.
“This is a rare and blackswan event for the country. On markets, this will have a long-term positive effect. A lot of flow and liquidity will be directed and brought in the economy,” said Mustafa Nadeem, CEO, Epic Research Pvt.
India is the world’s largest gold consumer and imports a sizeable chunk of its total annual consumption of around 900-1,000 tonnes.