Jewellery Stocks Decline as Gold and Silver Imports Face Cost Increases

Gold and Silver Prices Surge as India Raises Import Duties

Jewellery stocks experienced a decline in Wednesday's trade following the Centre's sharp increase in import duty on gold, silver, and other precious metals in a late-night notification by the Finance Ministry. The move is anticipated to make precious metal imports significantly more costly and weigh on sector sentiment.

Among key counters, Kalyan Jewellers led the decline, falling 4.33% to Rs 346.15, making it the biggest loser in the pack. Titan Company slipped 0.43% to Rs 4,037.80, while Senco Gold traded 0.19% lower at Rs 312.15. PC Jeweller also moved into the red, falling 0.94% to Rs 8.40. In contrast, P N Gadgil Jewellers traded marginally higher at Rs 627.40, up 0.02%.

The revised duty structure, effective from May 13, imposes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC) on imports of gold and silver, taking the effective import tax to 15% from the earlier 6%. The revised notification also covers platinum, jewellery findings, and precious metal-linked industrial imports. This move comes amid the Centre's broader push to curb non-essential imports and conserve foreign exchange reserves during ongoing global volatility.

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Domestic bullion prices surged sharply on Wednesday after India raised import duties on gold, silver, and other precious metals, triggering a rally across the commodities market. Gold prices on the Multi Commodity Exchange of India (MCX) hit their 6% upper circuit at Rs 1.62 lakh per 10 grams, while silver prices locked in the 6% upper circuit at Rs 2.95 lakh per kg.

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.