Interim Budget 2019 Reaction - Gold Jewellery Retail Industry - Impact - Neutral

- Mr. K Srikumar, Vice President and Co-Head, Corporate Ratings - ICRA Ltd

With gold being one of the preferred savings vehicles, the announcement of full tax rebate for middle-class segment apart from increase in standard deduction limit is a positive for the gold jewellery retail industry. Demand for gold jewellery, which has been subdued in the current year due to higher gold prices, lesser number of auspicious days, floods in Kerala and tightened credit to the sector, is expected to recover in FY2020. ICRA expects gold jewellery demand to grow by 6-8% in FY2020 supported by demand recovery in both rural and urban segments with improvement in consumer sentiments, higher disposable income and better purchasing power. Formulation of Comprehensive Gold policy, which was announced in the last Union budget, is yet to be implemented.

Shares of ICRA LTD. was last trading in BSE at Rs.3019.95 as compared to the previous close of Rs. 3019. The total number of shares traded during the day was 511 in over 13 trades.

The stock hit an intraday high of Rs. 3019.95 and intraday low of 2997. The net turnover during the day was Rs. 1531732.

Source : Equity Bulls

Keywords