COIMBATORE: The recent curbs on import of gold and the drop in prices of the precious metal have had a precipitous impact on the stocks of jewellery retailers. Leading jewellery retail firms have seen their market capitalisation slump with shares of several companies hitting their 52-week lows on the bourses.
Despite the recent fall, gold prices have dropped only 7.5% in rupee terms since early April when the yellow metal started to decline. A vast majority of jewellery retailers recorded sharp erosion in their market capitalisation (m-cap) during the period.
In all, 10 leading diamond and jewellery retailers, which have seen the biggest drop in stock prices, have lost over $1 billion (Rs. 6015.3 crore) in the past three months, ETIG data showed. Jewellery retailers have seen a 20%-70% fall in their m-cap during the period.
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