Volume the jewellery demand is likely to be bit muted this Diwali as people are going for other options such as coins, bars and ETFs
Mumbai: With the festival of Diwali along with marriage season around the corner, leading jewellers and bankers hope that the gold sale in India will grow during the festive season, reports PTI.
Prominent jewellery groups and bankers expressed hope that gold price volatility is unlikely to check the jewellery demand and a remarkable sale would be registered during this year's `Dhanteras' (a day in Hindu calendar considered auspicious for gold-buying).
"We expect the sales to grow by 35-40% this Dhanteras. The peak marriage season is immediately after Diwali," Mehul Choksi, chairman and managing director of Gitanjali Group told PTI.
However, in volume terms the growth is expected to be just 10%, as people will go more for light weight jewellery, he said, adding that demand for coins is very strong and has grown 35-40% year-on-year.
Shree Ganesh jewellery House head, marketing, Rahul Singh echoed the same growth estimate.
"With rising prices, light weight jewellery is in demand. People are buying gold jewellery for the upcoming festive and the wedding seasons, anticipating future rise in price. The purchase of gold coins is growing rapidly," he said.
Gold price on weekend was ruling at Rs30,480 per 10 grams on MCX and globally it was at $1,677 an ounce (28.34 grams).
This festive season the demand will pick up because usually, as prices go up the demand rises, World Gold Council Director, Investment, Amresh Achrya said.
Discounts by jewellers would fuel the demand, he added.
Kotak Mahindra Bank Executive Vice President Puneet Kapoor said last Diwali the bank sold 125 kgs of gold coins.
"This year we are expecting at least 20% growth," he said, adding that uptake would mostly be for 5, 8 and 20 gms category.
"As an investment, the yellow metal continues to command long term value, a tag for being a safe haven, hedge against inflation and asset allocation, etc," he said.
Angel Broking's head, commodities Naveen Mathur said the gold prices are likely to rule at around Rs35,500-31,000 level during the festive season. "The demand will be there for jewellery as people realise that gold will not go back to the previous year's level," he added.
However, in volume the jewellery demand will be a bit muted as people have options such as coins, bars and electronic traded funds (ETFs), he added.
Passing the order, the High Court said all petitions filed against Mayawati in the Taj corridor case were devoid of merit
Lucknow: In a major relief for Uttar Pradesh's former chief minister and BSP supremo Mayawati, the Allahabad High Court on Monday dismissed petitions against her in the Taj Corridor case, reports PTI.
The Lucknow bench of the court also dismissed the petitions against her cabinet colleague Naseemuddin Siddiqui.
Passing the order, the bench comprising justices Imtiyaz Murtaza and Ashwani Kumar Singh said all petitions were devoid of merit and were accordingly being dismissed.
BSP leader and Mayawati's counsel Satish Chandra Mishra termed the petitions filed in the case as "politically motivated" and pursued with "malafide intention".
"There are no offences against Mayawati in the Taj Corridor case," he told reporters after the court delivered a 74-page verdict.
The bench had on 12th September reserved its judgement on the PILs seeking direction for initiation of proceedings of criminal case against Mayawati and Siddiqui.
The special CBI court had in June 2007 dropped proceedings against Mayawati and Siddiqui for lack of prosecution sanction, which was not granted by the then Governor.
After this, three PILs were filed in 2009 challenging the decision of the CBI court. Later three more PILs were filed in this connection.
According to the former secretary to the GoI, activities of RIL in the KG basin have a long-term bearing on the public exchequer and therefore the petroleum ministry should allow the company’s accounts to be audited by the CAG
EAS Sarma, former secretary to the Government of India (GoI) has reiterated the demand to conduct a performance audit of Reliance Industries (RIL) and the Krishna Godavari (KG) Basin. In a letter sent to prime minister Dr Manmohan Singh and petroleum minister Veerappa Moily, the former secretary raised several issues related with RIL’s operations in the KG Basin while reinterring the need for conduction audit by Comptroller and Auditor General (CAG).
“The exploration and development effort put in by RIL in the KG Basin, the technology adopted, the resources discovered, the costs incurred, the claims made on pricing of gas and the costs to be reimbursed are all matters that impinge directly and indirectly on the public exchequer. All such matters should be subject to public scrutiny and RIL should be held accountable to the public,” Mr Sarma said in his letters.
Last week, RIL, in a statement, said it had never contested the government’s right to get the company’s spending on KG-D6 gas fields audited by the CAG but hoped it will not be subjected to a performance audit. Stating that it was a private operator functioning under a Production Sharing Contract (PSC), RIL said it ‘appreciates’ CAG's reported statement that it does not conduct performance audit of private firms.
”We appreciate the fact that the CAG is in agreement that it does not conduct performance audit of private operators and expect that no such performance related audit issues applicable to the government will be applied to any such audit,” RIL said.
The ministry of petroleum & natural gas, which continues to withhold permissions for RIL’s investment proposals, postponed a kick-off meeting scheduled for the CAG to begin audit of spending in the KG-D6 block by the Mukesh Ambani-led company. The CAG had called an Entry Conference with RIL and the oil ministry to begin its second round of audit that is to cover RIL’s spending on KG-D6 gas fields during 2008-09 to 2011-12. However, on 29th October, the ministry wrote letters calling off the 31st October meeting, sources told to PTI.
According to the PTI report, the meeting was called off due to differences over the nature and scope of audit to be conducted by the CAG. RIL has sought written assurance that the CAG scrutiny would be an “audit of accounting books and records” as provided under the production sharing contract (PSC) and that the company would not be “required to provide documents, information or any clarification of matters which go beyond scope of audit under Section 1.9 of the Accounting Procedure of the PSC.”
Also, RIL wants the audit to be carried at its premises and audit report to be submitted to the oil ministry, as provided under PSC, and not to the Parliament.
Mr Sarma, in his letter to the petroleum minister, said, that from the reports appearing in the press, he understands that the ministry has some reservations on asking the CAG to conduct a performance audit of RIL’s operations. In this connection, the former secretary has raised following points of relevance...
“I request you to keep all these concerns in view and entrust the CAG with the task of a comprehensive performance audit of RIL’s accounts for the KG Basin operations. It should be unconditional. I believe that such an action on your part will inspire confidence in all of us and protect the public interest,” Mr Sarma concluded.
Here is the letter written by Mr Sarma to the Prime Minister…