India Bullion and Jewellers Association (IBJA) Director Saurabh Gadgil told PTI that the market sentiment is improving but it has not yet become buoyant.
“If the overall business remains same as the last year or goes marginally up by 5 per cent, we will be very happy,” added Gadgil, who is also PNG Jewellers Chairman and Managing Director.
Postponement of salary, less than expected bonus, lack of clarity in removing jewellers from the Prevention of Money Laundering Act (PMLA) are some of the major issues that have dented the market sentiment this Dhanteras and Diwali, the festivals which generally see a lot of buying of precious metals, he added.
“Also, the slowdown in economy has contributed to the sluggish market sentiment,” Gadgil said.
The footfalls will increase at stores during the festivals next week, he said, but the sale ticket size will be lower.
Echoing a similar view, All India Gems and Jewellery Trade Federation (GJF) Chairman Nitin Khandelwal said there has been some relief for the maker players due to the government decision on the PMLA.
However, due to less currency in the market the overall sentiment is dull, he said.
“The momentum has started, but it is yet to pick up. There is less currency circulating in the market as an aftereffect of demonetisation announced last year. Because of this, there have been less buyers this year during Dhanteras and Diwali,” he added.
The business this year is expected to be at par with last year or could even be lower, Khandelwal said.
“To encourage people to buy jewellery during the festivals, the market is full of free offers and discounts.
Jewellers are try their best to increase footfalls and create positive sentiment in the market,” he added.
Mostly people will go for light…