Jewellery stocks like Titan, Kalyan & Senco fall as Indian Government hikes gold tariff 

Shares of most jewellery stocks came under pressure on Wednesday after the Centre raised import duties on gold and silver to 15 per cent from 6 per cent in a bid to curb imports and support the rupee. The hike in gold import duty comes as a third major shock for jewellery buyers and sellers, after the sharp rally in global gold prices and the depreciation of the Indian rupee.

Kalyan Jewellery shares fell 5.8 per cent intraday on the National Stock Exchange, while Senco Gold stock dropped 3.4 per cent. Further, shares of Sky Gold and Diamond, P N Gadgil, and Thangamayil Jewellery fell in the range of 3.6 per cent to 4.5 per cent.

The move is expected to increase domestic gold prices further, potentially hurting jewellery demand at a time when prices are already hovering near record highs. They believe higher prices could delay discretionary purchases, especially in the wedding and festive segments, impacting organised jewellery retailers such as Titan Company, Kalyan Jewellers, Senco Gold, and PC Jeweller.