Gold-related stocks traded mixed on Akshaya Tritiya; TBZ gains over 3 percent
Gold-related stocks in Friday’s trade (May 10, 2024) on the occasion of Akshaya Tritiya traded mixed even though shares of gold jewellery retailing companies see a push spurred by the auspicious tradition of buying gold. It is a general belief that any investment made on this day yields abundant fortune and thus people in India consider buying gold and other asset classes.
Akshaya Tritiya, which is celebrated today, is considered a highly auspicious occasion. It is widely believed that any investment made on this auspicious day shall yield bountiful results, hence people in India tend to buy Gold or related asset classes on this day.
At around 3:00 pm, shares of Titan were up at Rs 3290, up Rs 45.80 or 1.41%,Tribhovandas Bhimji Zaveri up by over 3 per cent at Rs 111.05, while Kalyan Jewellers and PC Jeweller traded with a cut of of over 1 per cent
As gold prices are trading at record high levels amid geo-political risk and rising global uncertainty, gold-related stocks have been underperforming on the exchanges. This is as concerns relating to lower demand persist given the exorbitantly high prices. In the spot market today, 24K gold in Delhi is priced at Rs 74,790 per 10 gm.
Pravesh Gour, Senior Technical Analyst, Swastika Investmart said, “Akshaya Tritiya, an auspicious day for gold purchases in India, presents both opportunities and challenges for investors considering gold-related stocks. While the occasion traditionally fuels demand, potentially boosting jeweller stocks, current high gold prices may dampen overall sales.”
“We recommend caution due to this and the possibility of a short-term market correction. However, gold’s long-term potential as a hedge against inflation and economic uncertainty remains attractive,” the expert added.
Gold-related stocks to buy
Gour lists Titan and Kalyan Jewellers as its top picks for those interested in buying gold stocks on the eve of Akshaya Tritiya. For Titan, the analyst recommends buying at current levels for a target of Rs 3500/ 3700 plus and stop loss of Rs 3050. Likewise, one can buy Kalyan Jewellers at current levels of Rs 394 for a target of Rs 450/500 plus with a stoploss Rs 350.
