A jewellery stock surged 14% on Thursday as Indian equity markets rebounded sharply after a steep fall in the previous session. The broader market recovered on strong buying in metal, banking, and auto stocks, with the Nifty 50 and Sensex gaining over 1% each.
Stock Details and Performance
The shares of the jewellery company, which hit a 52-week low earlier this week, climbed 14% to ₹285 on the BSE. The rally came on the back of heavy volumes, with over 1.2 million shares changing hands on the BSE and NSE combined, compared to the average daily volume of 0.3 million. The company's market capitalization rose to ₹2,100 crore.
According to market analysts, the surge was driven by value buying after the stock had fallen nearly 30% in the past month due to weak quarterly results and concerns over slowing demand. The broader market recovery also lifted sentiment for the stock.
Market Rebound
The benchmark BSE Sensex jumped 450 points to 58,200, while the Nifty 50 rose 135 points to 17,350. The rebound was led by metal stocks, with the Nifty Metal index gaining 3.5%. Banking stocks also contributed, with the Nifty Bank index up 2.1%.
"Markets recovered sharply after profit-booking in the previous session, supported by positive global cues and buying in beaten-down sectors," said a senior analyst at a domestic brokerage. "The jewellery stock benefited from bargain hunting and hopes of a revival in demand during the festive season."
Industry Context
The jewellery sector has been under pressure due to rising gold prices and weak consumer spending. However, analysts expect demand to pick up ahead of the wedding season and Diwali, which could boost sales for jewellery companies. The company in focus has a strong retail presence and is expected to benefit from the festive demand.
"We remain positive on the jewellery sector given the upcoming festive season and stable gold prices. The recent correction offers a good entry point for long-term investors," said a research analyst at a leading brokerage firm.
