Weak gold may boost sales by up to 40 pc this Akshay Tritiya

May 12, 2013

Weak_gold

Mumbai, May 12: The continued weakness in gold prices is likely to boost jewellery sales by up to 40 per cent this Akshay Tritiya, according to retailers.

"Due to the sudden dip in prices, we expect a very positive response from consumers as now is the time they indulge in gold. The festive season along with the low rates make it a perfect spending opportunity. The increase expected can be anywhere around 30-40 per cent compared to last year," Manubhai Jewellers Director Samir Sagar told PTI here.

Echoing him, Shree GaneshJewellery House Head-Retail, GAJA, Rahul Singh said, "We expect around 40 per cent rise in Akshay Tritiya sales compared to last year."

The day is considered auspicious to buy gold. But non-Hindu buyers also take advantage of the offers and discounts offered by jewellers, he added.

All India Gems and Jewellery Federation (GJF) Chairman Haresh Soni said overall sales in jewellery and bullion is expected to rise by about 25 per cent considering current reduction in gold prices this Akshay Tritiya.

From the regional perspective, southern India is expected to consume high percentage of sales, he added.

Gitanjali Group Chairman and Managing Director Mehul Choksi said drop in gold prices normally boosts demand for jewellery and coins. When the gold peaked late last year at above Rs 32,000 per 10 grams, demand slowed in terms of value, while during the recent drop to almost Rs 27,000 there has been a surge of consumers in jewellery stores across India. "If gold prices remain relatively weaker than last year's peak, which is what the market now expects, then demand will be good, if they fall further, demand on Akshay Tritiya will soar by 30 per cent," he added.

Kotak Mahindra Bank Executive Vice President Puneet Kapoor said this season Kotak Mahindra Bank is expecting to sell around 175 kg of gold coins and bars, which will be 30 per cent higher compared 135 kg during last Akshay Tritiya.

After witnessing steep fall in prices -- up to almost 20 per cent -- the price of gold became stagnant at the new level, and has again started inching upwards in anticipation of higher demand.

In the last 10 days, gold has already gained almost 8 per cent and if the trend continues, it will bring investor community back to the fore, he pointed out.

Reliance Capital Executive Director, Broking and Distribution Business, Vikrant Gugnani said gold prices as well as gold sales hit a high during last Akshay Tritiya. "The run-up to this Akshay Tritiya has seen some volatility in the gold prices and we expect this to have a positive impact on sales of gold coins. We are optimistic and expect a 30 per cent growth in sales over last year," he said. The bearish trend in gold prices has also given boost to online jewellery sales as the e-commerce has matured in jewellery segment in the past 10-12 months.

JewelsNext.com CEO Gaurav S Issar said, "We are expecting good sales with ticket size of Rs 25,000-50,000 this season. Last Diwali, transactions ranged between Rs 10,000-20,000 since there was no marketplace model, less awareness about e-commerce, less matured market."

On the investment side, Religare Securities AVP & in-charge - Metals, Energy and Currency Research - Sugandha Sachdeva said a steep correction in prices just ahead of Akshay Tritiya is absolutely a perfect time for the investors for fresh buying.

The ETF data of previous years suggests that the turnover on Akshay Tritiya has been extraordinarily high. "Gold Exchange Traded Funds (ETF) on NSE recorded a turnover of around Rs 600 crore last year on Akshay Tritiya and this year we expect an additional growth of around 400 crore, given the fact that gold appears to be a good bargain at current levels.

Last year, India's gold consumption (coins and jewellery) on this day was around 17 tonnes and this year sales are expected to be around 20 to 25 tonnes, if prices drop further," she added. MCX gold this week-end was at Rs 26,987 per 10 grams, while in the international market it was at USD 1,447 an ounce.

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Agencies
February 13,2020

New Delhi, Feb 13: The BJP's Amit Shah today said statements like "goli maaro" and "Indo-Pak match" should not have been made by BJP leaders ahead of the Delhi elections.

The BJP may have suffered in the elections because of hate statements made by party leaders, he said, reported news agency Press Trust of India.

The party, he said, had distanced itself from such remarks.

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News Network
June 9,2020

Jun 9: Prime Minister Narendra Modi wants all 1.3 billion Indians to be “vocal for local” — meaning, to not just use domestically made products but also to promote them. As an overseas citizen living in Hong Kong, I’m doing my bit by very vocally demanding Indian mangoes on every trip to the grocery. But half the summer is gone, and not a single slice so far.

My loss is due to India’s COVID-19 lockdown, which has severely pinched logistics, a perennial challenge in the huge, infrastructure-starved country. But more worrying than the disruption is the fruity political response to it. Rather than being a wake-up call for fixing supply chains, the pandemic seems to be putting India on an isolationist course. Why?

Granted that the liberal view that trade is good and autarky bad isn’t exactly fashionable anywhere right now. What makes India’s lurch troublesome is that the pace and direction of economic nationalism may be set by domestic business interests. The Indian liberals, many of whom are Western-trained academics, authors and — at least until a few years ago — policy makers, want a more competitive economy. They will be powerless to prevent the slide.

Modi’s call for a self-reliant India has been echoed by Home Minister Amit Shah, the cabinet’s unofficial No. 2, in a television interview. If Indians don’t buy foreign-made goods, the economy will see a jump, he said. The strategy — although it’s too nebulous yet to call it that — has a geopolitical element. A military standoff with China is under way, apparently triggered by India’s completion of a road and bridge near the common border in the tense Himalayan region of Ladakh. It’s very expensive to fight even a limited war there. With India’s economy flattened by COVID, New Delhi may be looking for ways to restore the status quo and send Beijing a signal.

Economic boycotts, such as Chinese consumers’ rejection of Japanese goods over territorial disputes in the East China Sea, are well understood as statecraft. In these times, it’s not even necessary to name an enemy. An undercurrent of popular anger against China, the source of both the virus and India’s biggest bilateral trade deficit, is supposed to do the job. But is it ever that easy?

A hastily introduced policy to stock only local goods in police and paramilitary canteens became a farcical exercise after the list of banned items ended up including products by the local units of Colgate-Palmolive Co., Nestle SA, and Unilever NV, which have had significant Indian operations for between 60 and 90 years, as well as Dabur India Ltd., a New Delhi-based maker of Ayurveda brands. The since-withdrawn list demonstrates the practical difficulty of bureaucrats trying to find things in a globalized world that are 100% indigenous.

Free-trade champions fret that the prime minister, whom they saw as being on their side six years ago, is acting against their advice to dismantle statist controls on land, labor and capital to help make the country more competitive. Engage with the world more, not less, they caution. But Modi also has to satisfy the Rashtriya Swayamsevak Sangh, the umbrella Hindu organisation that gets him votes. Its backbone of small traders, builders and businessmen — the RSS admits only men — was losing patience with the anemic economy even before the pandemic. Now, they’re in deep trouble, because India’s broken financial system won’t deliver even state-guaranteed loans to them.

The U.S.-China tensions — over trade, intellectual property, COVID responsibility and Hong Kong’s autonomy — offer a perfect backdrop. A dire domestic economy and trouble at the border provide the foreground. Big business will dial economic nationalism up and down to hit a trifecta of goals: Block competition from the People's Republic; make Western rivals fall in line and do joint ventures; and tap deep overseas capital markets. The first goal is being achieved with newly placed restrictions on investment from any country that shares a land border with India. The second aim is to be realized by corporate lobbying to influence India's whimsical economic policies. As for the third objective, with the regulatory environment becoming tougher for U.S.-listed Chinese companies like Alibaba Group Holding Ltd., an opportunity may open up for Indian firms.

All this may bring India Shenzhen-style enclaves of manufacturing and trade, but it will concentrate economic power in fewer hands, something that worries liberals. They’re moved by the suffering of India’s low-wage workers, who have borne the brunt of the COVID shutdown. But when their vision of a more just society and fairer income distribution prompts them to make common cause with the ideological Left, they’re quickly repelled by the Marxist voodoo that all cash, property, bonds and real estate held by citizens or within the nation “must be treated as national resources available during this crisis.” Who will invest in a country that does that instead of just printing money?

At the same time, when liberals look to the business class, they see a sudden swelling of support for ideas like a universal basic income. They wonder if this isn’t a ploy by industry to outsource part of the cost of labor to the taxpayer. Slogans like Modi’s vocal-for-local stir the pot and thicken the confusion. The value-conscious Indian consumer couldn’t give two hoots for calls to buy Indian, but large firms will know how to exploit economic nationalism. One day soon, I’ll get my mangoes — from them.

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News Network
April 5,2020

New Delhi, April 5: People were seen buying diyas and candles across the country to light them at 9 p.m. on Sunday to fight the "darkness of coronavirus" as requested by Prime Minister Narendra Modi.

Although the country is under a lockdown and all the shops barring those selling essential items are shut, but a number of makeshift roadside shops and carts have cropped up selling earthen lamps or diyas at various places.

The earthen lamps, along with other 'puja samgari', are also sold near various temples. Those shops also opened on Sunday.

Gatherings at the temples and other religious places too are barred.
Those who did not find diyas in their localities contended with candles available at the local general stores.

Prime Minister Narendra Modi had on April 3 appealed to people in a televised address to light diyas and candles on April 5 at 9 pm to fight the darkness spread by coronavirus pandemic.

"Friends, amidst the darkness spread by the corona pandemic, we must continuously progress towards light and hope. We must defeat the deep darkness of the crisis by spreading the glory of light in all four directions," said the Prime Minister in a video message.

"And that is why, this Sunday, on April 5, we must all together, challenge the darkness spread by the corona crisis, introducing it to the power of light. On this day, we must awaken the superpower of 130 crore Indians. We must take the super resolve of 130 crore Indians to even greater heights," Modi said.

He asked the people to turn off all the lights in their homes and stand at doors or balconies and light candles or diyas, torches or mobile flashlights for 9 minutes on April 5.

"In that light, in that lustre, in that radiance, let us resolve in our minds that we are not alone, that no one is alone! 130 crore Indians are committed, through a common resolve!" he said.
PM Modi's call to light diyas, torches or mobile flashlights amid the lockdown has proved to be a boon for shopkeepers selling diyas and candles.

"Sales of diyas have increased to 50 per cent and we also got orders. It has happened because of Modi ji's appeal. We are with him in this," Ram Ravi Kumar, a shopkeeper in Delhi told news agency.

Vikas Kumar, a resident of Patna, said, "I have bought 50 diyas for today. PM Modi had said that people have to light the diyas for nine minutes after switching off light at home."
Modi has asked citizens to not assemble anywhere while participating in this programme and emphasised on the importance of social distancing to prevent coronavirus spread.

Meanwhile, the number of positive cases of coronavirus in the country continues to surge. As per the Ministry of Health and Family Welfare, the total number of confirmed COVID-19 cases is 3,374 with 79 deaths.

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