Shares of jewellery companies like Titan and Kalyan Jewellers rose on Wednesday as gold prices climbed ahead of Dhanteras. Gold traded at Rs 1,46,600 per 10 grams, up Rs 4,800. Many investors bought shares as the festive and wedding seasons started, hoping for a strong recovery in the precious metal.
Shares of jewellery companies, including Titan Company and Kalyan Jewellers, rose on Wednesday amid buying interest ahead of Dhanteras, supported by a rise in gold prices.
Gold was trading at Rs 1,46,600 per 10 grams on Wednesday, up Rs 4,800 from the previous session's closing level.
Titan Company shares settled over 4 percent higher, while Kalyan Jewellers also gained around 4 percent. Goldiam International advanced 6.3 percent, while Sky Gold and Diamonds ended more than 5 percent higher.
The ongoing festive and wedding seasons are expected to support gold demand. Continued purchases by central banks could provide further support to prices over the next 12 months, the World Gold Council (WGC) said in its latest quarterly outlook.
Gold prices have declined around 12 percent over the past six months, while expectations of a recovery in the coming months have added to investor interest in the precious metal.
In October, gold prices declined by Rs 20,900, or 12.8 percent, to Rs 1.42 lakh per 10 grams on October 31, compared with Rs 1,62,900 on May 29.