Kalyan Jewellers, Titan Shares Decline Sharply Following Indian Bank Ban on Gold and Silver Imports

Gold and Silver Imports Halted in India, Kalyan Jewellers Shares Fall 5.47%

Shares of Kalyan Jewellers India plummeted nearly 6% on Friday after reports surfaced that banks in India have halted fresh gold and silver imports. The news sparked a decline in the company's stock price, with shares trading at Rs 416.20, down Rs 24.10 or 5.47%.

Another major jewellery player, Titan Company, which sells jewellery under the Tanishq brand, also suffered losses. Titan shares were trading at Rs 4,415.90, down Rs 45.50 or 1.02%. The decline in these companies' stock prices is likely due to the halt in gold and silver imports, which will lead to supply shortages and rising premiums after Akshaya Tritiya, one of India's biggest gold-buying festivals.

According to a Reuters report, large quantities of precious metals are currently delayed at customs because a formal government order authorising bullion imports has not yet been issued. The report also stated that around 8 tons of imported silver is stuck without customs clearance. This development has raised concerns that weak demand from India could weigh on global gold and silver prices, while helping narrow the country's trade deficit and support the rupee, which has been among the worst-performing Asian currencies this year.

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The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, usually issues an annual order listing banks authorised by the Reserve Bank of India to import gold and silver. The previous order, issued in April 2025, remained valid until March 31, 2026. However, banks are now awaiting a fresh directive from the DGFT, which has not made an official statement yet.

Experts have called for clarity on the issue to ensure imports resume. Without imports, supply shortages will emerge, and premiums will rise. The India Bullion and Jewellers Association has urged the government to issue a fresh directive to authorise gold and silver imports.