Indian gold demand seen falling to 8-year low in festive quarter.
Dealers are selling gold at a discount of Rs 175 for 10 gm.
Meanwhile, retail jewellery sales in India have declined by 50 per cent since gold price started its uptrend nearly two weeks. Buyers deferred their fresh purchase amid expectations of a correction in gold prices from the current high level.
It was unclear how bankers were deciding which jewellers to support
The best way to curb gold demand is by reducing black money in circulation.
Import in the first nine months of the current calendar year fell 20 per cent to 525 tonnes from 658 tonnes in the year-ago period.
Govt restrictions on import biting deep; trade petitions for relief with units, workers idling.
According to jewellers and MMTC-PAMP India, gold demand has picked up in the wake of good monsoon and favourable price levels. There was positive response and more footfalls.
Gold is currently ruling at Rs 30,050 per 10 grams.
According to World Gold Council (WGC), gold jewellery demand in India, the world's largest consumer, touched record 662.1 tonnes in 2014.
The scheme is yet to take off.
Dealers anticipated a sharp rise in jewellery demand this wedding season, but then came demonetisation.
At nine-month high, current prices attractive; consumers want to cash in before a correction
Dealers expect prices to fall further, owing to an impending rate hike in the US
Financials were among the top losers along with Sun Pharma and index heavyweight Reliance Industries
Bharatiya Janata Party's prime ministerial candidate, Narendra Modi, last month urged small traders to compete with foreign retail chains through e-commerce.
The Sensex soared 402 points higher to end at 25,720 and the Nifty surged 130 points to close at 7,819.
Investors booked profits at higher levels despite the growth oriented Budget.
Sensex ends lower; govt schemes in focus.
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