The jury is still out on whether the persistent efforts of the Government to contain gold consumption with a view to curtailing current account deficit has had the desired impact.

What is evident though is that the jewellery stocks have taken a beating with some of the major counters hovering close to their 52 week lows despite the recovery in the markets.

The latest salvo fired by the RBI against NBFCs that lend against gold has brought these stocks under pressure though there was no evidence of panic selling in them.

The jewellery stocks, which rode the market recovery beginning in the third quarter of last financial year, have seen their value erode by about 50 per cent since the crackdown on gold consumption began as a way to contain CAD. The exception has been Gitanjali Gems which is now trading at a fraction of its 52-week high.

Titan Industries , a major player in the branded jewellery segment, was trading at Rs 223.50, a gain of Rs 1.70. The stock, which touched a high of Rs 313.35 on November 30, 2012, is up by about 10 per cent from its 52-week low of Rs 201 that it fell to on June 13 this year.

Tribhovandas Bhimji Zaveri was up by Rs 5.55 at Rs 140.10 and this stock has bounced back from its 52-week low of Rs 114 that it touched on September 17 last year. Its 52-week high was Rs 300 that it touched on December 10.

Rajesh Exports was trading at Rs 100.30, a gain of 55 paise and it has gained about 10 per cent from its yearly low of Rs 93.10 on August 7.

Gitanjali Gems , probably the most heavily beaten down stock in the segment, was trading at Rs 69, a gain of Re 1. Though the stock has come back from its 52 week low of Rs 55.80 that it touched on August 12, it has lost significantly from its 52-week high of Rs 649.70 (April 23, 2013) in the past few months.

P.C. Jeweller Ltd , which in terms of percentage has witnessed one of the sharpest recoveries in the sector gaining about 50 per cent from its 52 week low, was trading at Rs 91.65, a gain of Rs 4.85. The stock has pulled back sharply from its 52 week low of Rs 63 that it touched on July 18 though it is still trading at 50 per cent of its yearly high of Rs 194.90.

Thangamayil Jewellery was trading at Rs 164, a loss of Rs 2.95. The stock was trading close to its yearly low of Rs 159 it touched on August 28 though sharply down from its yearly high of Rs 351 (December 6, 2012).

The latest RBI action on lending against gold by NBFCs had marginal effect on these counters that have kept company with jewellery stocks in shedding value, also partly because of the wild swing in the gold prices.

Manappuram Finance was trading at Rs 14.80 (share face value Rs 2), a loss of 60 paise and Muthoot Finance shed Rs 3.95 to trade at Rs 99.50. The stock touched a high of Rs 246 on January 3 this year but since then has been on a downward spiral.

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