Jewellery stocks fall after government raises import duty on gold and silver
Jewellery stocks came under pressure on Wednesday after the government sharply increased import duties on gold, silver and other precious metals. The move negatively impacted sentiment across the sector.
Shares of Kalyan Jewellers fell 4.33% to Rs 346.15, making it the biggest loser among major jewellery stocks.
Meanwhile, Titan Company slipped 0.43% to Rs 4,037.80, while Senco Gold traded 0.19% lower at Rs 312.15.
PC Jeweller also declined 0.94% to Rs 8.40. However, P N Gadgil Jewellers managed to stay slightly positive and rose 0.02% to Rs 627.40.
Jewellery Stocks
| Company | Approx Current Price | Recent Stock Change | Profit Growth / Key Metric |
| Titan Company | ₹4,037–₹4,055 | -3% to -7% recently | Q4 FY26 PAT +35% YoY |
| Kalyan Jewellers | ₹346–₹360 | -4% to -13% in 2 days | Q4 FY26 PAT +89% to +118% YoY (various reports) |
| Senco Gold | ₹312–₹320 | -6% to -10% recently | Strong growth, but “702% profit growth” not fully verified |
| P N Gadgil Jewellers | ₹620–₹627 | Flat to -6% | Moderate earnings growth reported |
| Thangamayil Jewellery | ₹3,600–₹4,200 | -6% to -8% | Healthy quarterly growth |
| Sky Gold and Diamonds | ₹440–₹540 | Highly volatile | Growth positive but volatile |
| PC Jeweller | ₹8–₹10 | -5% to -6% | Weak but improving profitability |
| Goldiam International | ₹383–₹435 | Mixed movement | Stable export-driven growth |
| Bluestone Jewellery and Lifestyle | Around ₹474 | Slightly positive | Limited public data available |
Read More : India’s Retail Inflation Rises to 4-Month High as Food Prices Start Climbing Again
Import duty increased to 15% from earlier 6%
Under the revised structure effective from May 13, the government increased the effective import tax on gold and silver to 15% from 6%.
The new structure includes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC).
The revised notification also covers platinum imports, jewellery findings and precious metal-linked industrial products.
Analysts believe the move is aimed at reducing non-essential imports and protecting foreign exchange reserves during global economic uncertainty.
Jewellery stocks Gainers vs Losers
| Gainers | Price / Change | Losers | Price / Change |
|---|---|---|---|
| P N Gadgil Jewellers | ₹620.95 to ₹627 (+0% to -1%) | Kalyan Jewellers | ₹343 to ₹346 (-4% to -6%) |
| Gold ETFs | +4% to +6% surge | Titan Company | ₹4,024 to ₹4,055 (-0.7% to -8%) |
| Physical Gold Holders | Gold prices surged sharply | Senco Gold | ₹307 to ₹312 (-1.6% to -10%) |
| Silver ETFs | Strong rally after duty hike | Thangamayil Jewellery | Down up to 6%-9% |
| Bullion Traders | Benefited from rising bullion prices | PC Jeweller | ₹8.4 (-1% to -6%) |
Gold and silver prices rally sharply on MCX
Following the announcement, domestic bullion prices witnessed a sharp rally in the commodity market.
Gold prices on MCX hit the 6% upper circuit at Rs 1.62 lakh per 10 grams. Silver prices also locked in the 6% upper circuit at Rs 2.95 lakh per kilogram.
In the international market, spot silver rose 1% to $87.40 per ounce, while spot gold traded near $4,713.39 per ounce.
US gold futures for June delivery also gained 0.7% to $4,721.80 per ounce.
Why Jewellery Stocks Fell
| Reason | Impact on Jewellery Stocks |
|---|---|
| Gold & Silver Import Duty Hike | Government raised import duty from 6% to 15%, increasing raw material costs for jewellers. |
| Rising Gold Prices | Domestic gold and silver prices surged sharply, making jewellery more expensive for consumers. |
| Fear of Lower Demand | Higher jewellery prices may reduce consumer buying, especially discretionary purchases. |
| PM Modi’s Appeal | PM Narendra Modi urged citizens to avoid gold purchases for a year to help conserve forex reserves. |
| Margin Pressure Concerns | Investors fear higher import costs could hurt jewellers’ profit margins in the short term. |
| Market Panic Selling | Sharp policy changes triggered heavy selling in jewellery stocks like Titan, Kalyan and Senco Gold. |
| Global Economic Volatility | Rising crude oil prices, rupee weakness and forex concerns increased market uncertainty. |
Here’s what happened today and why traders reacted
The market reacted negatively because higher import duties increase raw material costs for jewellery companies.
Investors also fear that rising gold prices may impact customer demand, especially in price-sensitive markets.
A bullion market analyst said, “The immediate concern for investors is whether jewellers can pass on higher costs without affecting demand.”
At the same time, commodity traders turned bullish on gold and silver prices due to expectations of tighter domestic supply.
What impact could this have on investors?
The duty hike may keep jewellery stocks volatile in the near term as investors assess its impact on margins and sales growth.
Companies with stronger brands and better pricing power may handle the pressure more effectively than smaller players.
Investors are now expected to closely watch festive demand trends, gold price movement and management commentary from listed jewellery companies.
Jewellery sector may remain under pressure in coming sessions
The latest government move has created mixed sentiment in the market. Bullion prices are rising sharply, but jewellery stocks are facing pressure due to higher costs.
If gold prices remain elevated, traders believe volatility in jewellery stocks could continue over the next few sessions.
Market participants will now monitor consumer demand and future policy developments for further direction in the sector.
