India: Small-Diamond Demand Weak

Drop in sentiment amid rupee depreciation and Surat bankruptcy rumors.Small-scale manufacturers under pressure as domestic demand for under-0.25 ct. goodsdeclines. Steady US interest in SI-I1 diamonds. Fewer foreign dealers in themarket than during last week's Bharat Diamond Bourse buying event. Jewelerscautious ahead of Diwali festival as weak rupee inflates gold prices.

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