The general market is faintly affected by the meltdown, while the city’s precious metals and gold shops feel singed by the global economic phenomenon, says Jawed Khurshid

The city may be sulking after double digit inflation that bruised it badly but the festival of light – Diwali, fails to budge under meltdown. On the eve of the festival, the industrial growth showed poor performance and according to one estimate this trend would continue till the mid of 2015. But the Sensex’s impressive show has brought partial relief to consumers. This has dispelled the popular belief that market would register low sales as it was witnessed during Ramnavmi last month.

Trade pundits had predicted gloomy economic scenario after Wall Street’s protests against crony capitalism, inflation and unemployment there. Contrary to this the domestic markets witnessed great surge of customers cramming for firecrackers, sweets and fruits on the eve of Diwali.  

However the jewellery shops feel singed by the economic lows. They are warily optimistic about sales this Diwali, due to unpredictability in the prices of precious metals. Lack of seasonal discount offers may also keep retail consumers away this festive season – traditionally the most “auspicious” occasion to buy gold. Consequently, retailers are expecting gold sales to remain flat this year.

“2014 is harsh,” says a jeweler of a little known shop at Andheri-Kurla Road, “People are reeling through very high inflation along with the peak interest rate which has squeezed their savings.”

Also, given that gold’s future movement was available with almost all consumers, people prefer to buy the metal on corrections rather than waiting for an auspicious occasion, he added. “They (consumers), opt to exchange the metal on festival days and avoid fresh purchases. Therefore, overall gold sales may remain around 10 per cent lesser this Diwali than last season,” he quips.