Domestic jewellery retailers are likely to face heavy losses, due to escalated gold prices in the last few months and lockdown

Lengthy operating cycles and working capital intensive nature of the business is an inherent characteristic of the gems and jewellery industry

In the short-term, geopolitical tensions especially between the U.S. and China would continue to impact the diamond sector, while rising prices and a falling rupee would weigh negatively on the gold jewellery segment, says Care Ratings report

Though export market and large diamantaires in the organised sector may not be impacted much, small and medium players, carrying out local trade and sourcing, are expected to feel the pinch of currency recall exercise, it pointed out.