Click to play videoNew Delhi: Surat's diamond trade market is now more interested in what’s happening at the stock market than in the diamond industry.
With thirty per cent of the industry's money stuck in the stock market, production work has drastically slowed down.
“We have a channel. If payment gets stuck somewhere because of the stock market, the diamond industry suffers,” says Dhirubhai Patel, who’s a diamond trader in Surat.
Hoping to make the most of the stock market boom in 2007, many diamond traders pumped their money into it.
By one estimate, this figure is around Rs 4,000 crore. Most of the money has been wiped out due to the stock market freefall over the past few months.
“Stock market has really gone down the drain and if you look at the scenario six months from now, no one is sure what the position of the buyers will be,” Joint Secy, Surat Diamond Association, Rohit Mehta, says.
“The panic is so much that we are keeping a close watch on the portfolios of our buyers to see what they are working with,” Prakash Badmecha, who’s a diamond trader too, says.
The biggest loss is perhaps the mutual trust, which, until now, was the basis of monetary deals worth crores of rupees.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)
 |
 |
 |
|
More on IBNLive Right Now
TOP NEWS
MOST SHARED
PHOTOGALLERY
