GROWTH AND SCOPE OF GEMS AND JEWELLERY INDUSTRY IN INDIA

INTRODUCTION OF GEMS AND JEWELLERY SECTOR-

  • India’s gems and jewellery sector has been contributing around 13-15 per cent over past five years to India’s total exports and employs over 4.64 million employees.
  • India is the largest manufacturer of cut and polished diamonds in the world and exports 93 per cent of its production.
  • India is one of the largest exporters of gems and jewellery and the industry is considered to play a vital role in the Indian economy and also major contributor to the total foreign reserves of the country
  • India exports 75 per cent of the world’s polished diamonds.
  • Today, 12 out of 14 diamonds sold in the world are either polished or cut in India
  • India’s gems and jewellery sector is one of the largest in the world contributing 29 per cent to the global jewellery consumption
  • The overall net exports of gems and jewellery stood at US$ 35.59 billion during FY2016-17 registering a growth of 9.07 per cent over FY 2015-16.
  • India’s gems and jewellery imports increased at a compound annual growth rate (CAGR) of 7.84%
  • The Government of India has permitted 100 per cent FDI under the automatic route in this sector.
  • US, Hong Kong and UAE imported 75 per cent of the total gems and jewellery exports from India during FY 2016-17.
  • India’s exports 93 per cent of its cut and polished diamonds produced.

INDUSTRY GROWTH & EXPECTATION

  • Companies are indulging in expansion to more and more cities as well as expanding across the value chain.
  • Retailers in India have started selling their jewellery online. The growth of online jewellery is driven by increasing internet penetration rates, growth in high net worth individuals’ population and availability of low online jewellery prices.
  • Majority of the players in the Indian market have started selling jewellery online; for example Malabar Gold, Tanishq, Tribhovandas Bhimji Zaveri, PC Jeweller, etc
  • Companies are also giving buy back option to customers on jewellery within certain days after the purchase and based on certain terms and conditions.
  • Companies have also started providing financial facility to their customers who cannot afford to pay the whole amount at once.
  • The increasing middle class population symbolises an increase in income of the population; and income is a major driver of demand for gold and jewellery in India.
  • As income rises, so does savings and Indians prefer buying gold with their savings as they consider gold as an important form of investment.
  • In 2016, India’s gold demand stood at 666.1 tonnes; and 298.4 tonnes between January-June 2017.

MARKET KEY PLAYERS

jewllwers

MAJOR INVESTMENTS AND DEVELOPMENTS

  • Cumulative Foreign Direct Investment (FDI) in diamond and gold ornaments in India FY08-17 rose at a compound annual growth rate (CAGR) of 21.43 per cent.
  • Cumulative FDI between April 2000-June 2017 in the sector rose from US$ 167.54 million as of March 2008 to 961.62 million as of June 2017.
  • The International Institute of Diamond Grading and Research (IIDGR) have invested US$ 5 million for expanding its synthetic diamond testing facility in Surat.
  • The Indian Commodity Exchange (ICEX), backed by the Anil Ambani Group has launched the first ever futures contract for diamonds in the world, to create many new opportunities for diamond players.
  • Jewelers companies have been consciously altering their product offerings in favor of high-margin studded and wedding jewellery variants.
  • The removal of gem and jewellery from the ambit of the Prevention of Money Laundering Act has come as a big relief for the sector which is reeling under the twin impact of demonetisation and GST. Following the move, jewellers need not verify the identity of their clients by a KYC process for every transaction of 50,000 or more made through a single or multiple transactions.

GOVERNMENT INITIATIVES

  • A jewellery park worth Rs 50 crore (US$ 7.8 million) is to be set up in Mumbai by the Government of India where local handmade workers and factories will be relocated to develop their trade, improve their work environment and standard of living.
  • The Government of India launched the Sovereign Gold Bond Scheme. This scheme enables the Reserve Bank of India (RBI) to issue gold bonds denominated in grams of gold individuals in consultation with Ministry of Finance.
  • The Government of India has approved the setting up of four common facility centres (CFCs) in Ahmedabad, Amreli, Visanagar and Palanpur at a total cost of INR 16.15 crore (US$ 2.52 million); of which the CFCs at Palanpur and Visanagar have already been inaugurated
  • These CFCs are expected to provide access to a common pool of state-of-the-art machinery and equipment at a cheaper rate to small and medium diamond manufacturers; and it will also be used for transfer of technology and r e-skilling and training of existing artisans.
  • A total of 200 small and medium manufacturers will receive access to the CFCs.
  • Mr Arun Jaitley, Minister of Finance, Government of India, launched the Gold Monetisation Scheme in November 2015. This scheme enables individuals, trusts and mutual funds to deposit gold with banks and earn interest on the same in return.
  • The designated banks accept gold deposits under the Short Term (1-3 Years) Bank Deposit as well as Medium (5-7 years) and long (12-15 years) Term Government Deposit Schemes.

ROAD MAP AHEAD

Gems and Jewellery sector (in particular, top big companies ; as there is entry level barrier  for new companies in the sector and the trust of people they enjoy ) is full of opportunities in the coming years as demand in India for gold will never end and as middle class population income increases. As income rises, so does saving and Indians prefer to buy gold with their saving as they consider gold as an auspicious and important part of investment.

Also, during festivals like Diwali and Dhanteras as well as during weddings and other significant celebrations, people in India tend to spend a considerable amount of money in gems and jewellery especially in gold, all of which are expected to drive demand of gold in the future.

OUR RECOMMENDATION ON STOCKS

 BUY PC JEWELLER ABOVE 386 TARGET 420-460  WITH STOP LOSS OF 350.

BUY TBZ ABOVE 145 TARGET 165-190 WITH STOP LOSS OF 128.

BUY GITANJALI GEMS ABOVE 99 TARGET 115-140 WITH STOP LOSS OF 80.

BUY RAJESH EXPORTS ABOVE 770 TARGET 810-860 WITH SL 730.

 For More Share Market News & Updates Visit – www.marketmagnify.com or Miss call @7879881122.

WEEKLY EQUITY REPORT

MARKET 0UTLOOK

The market was BULLISH during the week. The Sensex was UP 336.44 points while the Nifty was UP 1.03 % during the week. Nifty was in the range of 10261-10405

The benchmark S&P 500 and the blue-chip Dow Jones industrials posted weekly gains for the first time in three weeks while the Nasdaq Composite posted its best weekly performance since the week to September 1. The S&P 500 and Nasdaq closed around highs on Friday, with the S&P ending above 2,600 points for the first time. The S&P 500 gained 0.2 percent to 2,602.42, finishing the holiday-shortened session above 2,600 for the first time. The Nasdaq Composite Index rose 0.3 per cent to 6,889.16, its third straight closing high, while the Dow Jones Industrial Average advanced 0.1 per cent to 23,557.99. The S&P 500 and NASDAQ finished at fresh records on Friday as the start of the holiday shopping season boosted Amazon and several other retailers. Retail experts are generally upbeat about this year’s holiday shopping performance amid low unemployment and lofty stock valuations. Amazon jumped 2.6 percent as it announced a bevy of deals ahead of the “Cyber Monday” shopping day. The S&P retail index rose 0.75 percent and hit a record intraday high, led by Amazon’s 2.6 percent gain. The energy index and the materials index were boosted by rising commodities prices. US oil prices jumped to a more than two-year high as North American markets tightened on the partial closure of a key pipeline linking Canada and the United States.

For the week, the Sensex was UP 336.44 points while the Nifty was UP 1.03 % during the week.

NEWS AFFECTING INDIAN MARKETS

Reform pace has been good, but have seen some teething problems: S&P Ratings Services

Centre to auction up to 21 GW solar, wind capacity by March 2018

NBFCs’ to have 19% pie of overall loan market by FY20: Report

Apparel exports in Rajasthan down 30% in October

MARKET PERFORMANCE

NIFTY GAINERS

COMPANY NAME CURRENT PREV. CLOSE(RS) CHANG.(RS) CHAG.(%)
AUROPHARMA 717.00 694.40 22.60 3.25
GAIL 471.50 462.90 8.60 1.86
INFRATEL 381.00 374.60 6.40 1.71
INFY 1008.00 991.25 16.75 1.69
INDUSINDBK 1670.05 1643.35 26.70 1.62

  NIFTY LOSERS

COMPANY NAME CURRENT PREV. CLOSE(RS) CHANG.(RS) CHAG.(%)
HINDALCO 251.40 255.25 -3.85 -1.51
VEDL 306.00 308.80 -2.80 -0.91
SBIN 332.10 334.95 -2.85 -0.85
ICICIBANK 316.85 319.45 -2.60 -0.81
UPL 744.00 749.20 -5.20 -0.69

 NSE WEEKLY GAINERS         

COMPANY NAME DAY’S CLOSING PRICE (RS.) PREV.CLOSE 5 DAYS AGO (RS.) 5 DAYS RETURN (%)
N K Industries L 70.05 34.30 35.75 104.23
Jai Corp Ltd. 189.65 118.45 71.20 60.11
Zandu Realty 2032.05 1345.95 686.10 50.98
Praj Industries 117.10 81.30 35.80 44.03
Nagreeka Export 54.65 38.45 16.20 42.13

WEEKLY CHARTS

S&P NIFTY WEEKLY

S&P NIFTY WEEKLY

BANK NIFTY WEEKLY

BANK NIFTY WEEKLY

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Daily Equity Report As on 24-Nov.-2017

MARKET HIGHLIGHTS

Nifty ended at 10389.70 UP 40.95 and Sensex at 33679.24 UP 91.16 points.

Centre to sanction Rs 1 lakh cr for highways, ports in Tamil Nadu: Nitin Gadkari.

NBFCs’ to have 19% pie of overall loan market by FY20: Report.

Zydus Cadila’s acne drug receives USFDA go-ahead.

EFSL raises Rs 1,527 crore through QIP.

Mahindra to bid for second stage of EESL tender for EVs.

Telecom sector’s serial purchaser Airtel now interested in buying RCom’s spectrum.

NIFTY DAILY

Niftydaily

BANK NIFTY DAILY

Bank nifty

MARKET PERFORMANCE

NIFTY GAINERS                                                                                               

COMPANY NAME CURRENT PREV. CLOSE(RS) CHANG.(RS) CHAG.(%)
AUROPHARMA 717.00 694.40 22.60 3.25
GAIL 471.50 462.90 8.60 1.86
INFRATEL 381.00 374.60 6.40 1.71
INFY 1008.00 991.25 16.75 1.69
INDUSINDBK 1670.05 1643.35 26.70 1.62

NIFTY LOSERS          

COMPANY NAME CURRENT PREV. CLOSE(RS) CHANG.(RS) CHAG.(%)
HINDALCO 251.40 255.25 -3.85 -1.51
VEDL 306.00 308.80 -2.80 -0.91
SBIN 332.10 334.95 -2.85 -0.85
ICICIBANK 316.85 319.45 -2.60 -0.81
UPL 744.00 749.20 -5.20 -0.69

NSE STATS                 

ADVANCES 35
DECLINES 15
UNCHANGED 00 


FII TRADING ACTIVITY (NSE & BSE)
In Crores

CATEGORY DATE BUY VALUE SELL VALUE NET VALUE
FII/FPI 24-NOV-17 4327.32 4743.6 -416.28                 


DII TRADING ACTIVITY (NSE & BSE)
In Crores  

CATEGORY DATE BUY VALUE SELL VALUE NET VALUE
DII 24-NOV-17 3389.69 2962.06 427.63

 For More Share Market News & Updates Visit – www.marketmagnify.com or Miss call @7879881122.

Stock to watch for 27th NOV

SYNDICATE BANK

The stock is at its resistance level and sustaining around higher level around its resistance level, MACD has also shown upward crossover.

We recommended traders to buy Syndicate Bank Future above 96 level and target of 98-101 may achieved with a stop loss of 93.80.

SYNDICATE BANK

PC JEWELLER

Stock is in bullish trend and consolidating around higher levels but Friday momentum and closing around higher levels is a positive sign for the stock and also MACD has also shown upward crossover and RSI is at 60.03 level.

We recommended traders to buy Pc Jeweller future above 386 level and target of 390-396 may achieved with a stop loss of 381.

PC JEWELLER

Daily Equity Market Update or Share Market Live  News Update visit www.marketmagnify.com or stock market advice Missed Call This No.7879881122.

MARKET COMMENTARY AS ON 24th NOV

After four consecutive range bound trading session finally investors gets some relief from the market on the last day of the week as sensex closed with a gain of 91.16 at 33679.24 and Nifty future closed with a gain of 50.85 at 10417.50 market breadth was positive this time as 1506 shares advanced against a decline of 1227 shares and 154 shares were unchanged.

marLooses were only seen in PSU banks and metal sector both indices down by 0.57%, rest of the indices end with little gain in which Nifty pharma closes with gain of 0.77 followed by Nifty FMCG with a gain of 0.72%

Auro pharma, Indusind Bank and Infosys was the top gainers today and Idea, Hindalco and Vedanta was the top losers.

Nifty future weekly closing showed some positive sign for next week as nifty breaks its crucial resistance level of 10390 and sustain above it, whereas Bank nifty future main hurdle is to cross 25890-25920 level, which is been strong resistance zone, Market trend is looking positive for Monday and  trading strategy for Monday will be buy on dips as market trend may be consolidate to bullish till market breakdown last week Friday gap area.

RESISTANCE & SUPPORT LEVELS -:

Support of Nifty future is placed at 10380 and 10265.

Resistance of Nifty future is placed at 10490 and 10570.

Support of Bank Nifty future is placed at 25650 and 25550.

Resistance of Bank Nifty future is placed at 25920 and 26010.

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