Govt’s measures work, gold demand drops 12% in 2012
16 Feb 2013 5:19 AM IST
The country's gold demand dipped by 12 per cent in 2012 to 864.2 tonne, mainly on account of higher import duties, jewellers strike over proposed measures to curb imports and a sharp rise in the domestic price, World Gold Council said in its recent report.
The overall demand of gold in the country had stood at 986.3 tonne in 2011, according to the WGC Gold Demand Trend 2012 report released on Thursday.
'China and India remain the world's gold power houses. In India, consumer sentiment towards gold remained strong despite measures aimed at curbing demand, reaffirming gold's role in Indian society. In an underdeveloped financial system like India, gold has an important role to play,' WGC Managing Director, Investment, Marcus Grubb said.
In 2013, World Gold Council expects the demand to be in the 865-965 tonne range, an 11 per cent increase at the upper end, depending on any further government measures, he said.India is likely to remain the biggest market for gold this year followed by China, he said.
In the first half of 2012, consumers faced headwinds in the form of higher import duties, market turmoil over proposed measures to curb imports and a sharp rise in the local price. However, the demand staged a strong revival in the second half of the year as the market thrived during the fourth quarter wedding season and festive period.
Total jewellery demand in the country in 2012 was down by 11 per cent to 552 tonne, compared to 618.3 tonne in 2011. However, the demand in terms of jewellery value rose by 8 per cent to Rs 1,l58,090 crore, compared to Rs 1,46,067.8 crore in 2011.Total investment demand was down by 15 per cent to 312.2 tonnes, against 368 tonnes in 2011.
In value terms, gold investment demand went up by a marginal 3 per cent to Rs 89,412 crore compared to Rs 86,936.7 crore in 2011.
'Despite the turbulent macroeconomic climate throughout the year, as well as the regional uncertainties affecting India and China, the two largest gold markets, annual demand was 30 per cent higher than the average for the past decade,' Grubb added.
SENSEX SLIDES 111 POINTS
Shrugging off positive cues from easing inflation numbers, the BSE benchmark Sensex on Thursday fell by 111 points, snapping a two-day rally, hit by 2-4 per cent losses in RIL, Bharti Airtel, SBI, Maruti and Wipro shares.
After a better start at 19639.83, the Sensex tumbled by 110.90 points, or 0.57 per cent to 19,497.18 as investors adopted a cautio stance, wiping a major portion of the 147 point gained in past two days.
The broad-based National Stock Exchange index Nifty lost 36 points, or 0.61 per cent to 5,896.95, after touching the day’s high of 5,940.20.
Bharti Airtel slumped by 4 per cent after reports said it faces significant spectrum charge demand by DoT. Wipro fell by 3.3 per cent on selling due to its exclusion from NSE Nifty index from 1 April, while Maruti Suzuki lost over 3 per cent on being dropped from MSCI India index from 28 February. State Bank of India shares also lost nearly 1.80 per cent after a lower-than-expected increase in quarterly net profit.
Rs DECLINES BY 10 PAISE AGAINST $ TO 53.92
The Indian rupee ended lower by 10 paise to 53.92 against the American currency on fresh dollar demand from banks and importers on the back of higher dollar in overseas amdist weak local equity market.
The rupee resumed lower at 53.85 per dollar as against the yesterday’s closing level of 53.82 per dollar at the Interbank Foreign Exchange (Forex) Market and declined further to 53.97 per dollar before ending the day at 53.92 per dollar, showing a loss of ten paise or 0.19 per cent.
It moved in a range of 53.81 per dollar and 53.97 per dollar during the day.
Banks and importers preferred to increase their dollar position in view of firm dollar in the overseas market.In Sydney market, the U.S. dollar inched higher gaining some traction against rivals ahead of a meeting of the worlds top finance ministers and central bankers.
The overall demand of gold in the country had stood at 986.3 tonne in 2011, according to the WGC Gold Demand Trend 2012 report released on Thursday.
'China and India remain the world's gold power houses. In India, consumer sentiment towards gold remained strong despite measures aimed at curbing demand, reaffirming gold's role in Indian society. In an underdeveloped financial system like India, gold has an important role to play,' WGC Managing Director, Investment, Marcus Grubb said.
In 2013, World Gold Council expects the demand to be in the 865-965 tonne range, an 11 per cent increase at the upper end, depending on any further government measures, he said.India is likely to remain the biggest market for gold this year followed by China, he said.
In the first half of 2012, consumers faced headwinds in the form of higher import duties, market turmoil over proposed measures to curb imports and a sharp rise in the local price. However, the demand staged a strong revival in the second half of the year as the market thrived during the fourth quarter wedding season and festive period.
Total jewellery demand in the country in 2012 was down by 11 per cent to 552 tonne, compared to 618.3 tonne in 2011. However, the demand in terms of jewellery value rose by 8 per cent to Rs 1,l58,090 crore, compared to Rs 1,46,067.8 crore in 2011.Total investment demand was down by 15 per cent to 312.2 tonnes, against 368 tonnes in 2011.
In value terms, gold investment demand went up by a marginal 3 per cent to Rs 89,412 crore compared to Rs 86,936.7 crore in 2011.
'Despite the turbulent macroeconomic climate throughout the year, as well as the regional uncertainties affecting India and China, the two largest gold markets, annual demand was 30 per cent higher than the average for the past decade,' Grubb added.
SENSEX SLIDES 111 POINTS
Shrugging off positive cues from easing inflation numbers, the BSE benchmark Sensex on Thursday fell by 111 points, snapping a two-day rally, hit by 2-4 per cent losses in RIL, Bharti Airtel, SBI, Maruti and Wipro shares.
After a better start at 19639.83, the Sensex tumbled by 110.90 points, or 0.57 per cent to 19,497.18 as investors adopted a cautio stance, wiping a major portion of the 147 point gained in past two days.
The broad-based National Stock Exchange index Nifty lost 36 points, or 0.61 per cent to 5,896.95, after touching the day’s high of 5,940.20.
Bharti Airtel slumped by 4 per cent after reports said it faces significant spectrum charge demand by DoT. Wipro fell by 3.3 per cent on selling due to its exclusion from NSE Nifty index from 1 April, while Maruti Suzuki lost over 3 per cent on being dropped from MSCI India index from 28 February. State Bank of India shares also lost nearly 1.80 per cent after a lower-than-expected increase in quarterly net profit.
Rs DECLINES BY 10 PAISE AGAINST $ TO 53.92
The Indian rupee ended lower by 10 paise to 53.92 against the American currency on fresh dollar demand from banks and importers on the back of higher dollar in overseas amdist weak local equity market.
The rupee resumed lower at 53.85 per dollar as against the yesterday’s closing level of 53.82 per dollar at the Interbank Foreign Exchange (Forex) Market and declined further to 53.97 per dollar before ending the day at 53.92 per dollar, showing a loss of ten paise or 0.19 per cent.
It moved in a range of 53.81 per dollar and 53.97 per dollar during the day.
Banks and importers preferred to increase their dollar position in view of firm dollar in the overseas market.In Sydney market, the U.S. dollar inched higher gaining some traction against rivals ahead of a meeting of the worlds top finance ministers and central bankers.
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