SP Tulsian of sptulsian.com told CNBC-TV18, "The fall in jewellery stocks is because of the working capital pressure. All of them were going with the non-fund based facility with 180 days of credit available which now that window is shut and there will be huge working capital pressure."
He further added, "Second, there is inventory loss. All these gold companies are having quantity of their jewelleries as well as the gold stock. So, they are taking hit on that. Going forward, the appetite for the jewellery is going to fall. People may look to make investment in raw gold."
"Gitanjali Gems with a volume of 1 lakh shares in the first 15 minutes we have seen sellers standing for about 18-20 lakh shares on both exchanges. The margin call pressures or may be the liquidations by the informed circle is making this particular stock quite vulnerable. I won't be surprised to see the stock correcting to a level of Rs 300-320 in the near term as well. If one takes the case of Shree Ganesh Jewellery, PC Jewellers, TBZ, all these stocks, I don't think they are really comforting and having question mark on their future working as well," Tulsian said.
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