From Senco To Kalyan: Why These Gold Stocks Plummeted Upto 6% On May 13

After the centre raised import duties on gold, and silver to 15% from 6%, the shares several jewellery stocks came under pressure, declining upto 6%.

The import duty hike on gold is aimed at reducing imports, strengthen the rupee, and maintain forex reserves.

On this move, Axis Securities Head of Research Rajesh Palviya Jain, said, " India is importing gold as well as crude oil. The government can control some gold imports, so the PM has already urged and made an appeal to try to avoid gold buying to maintain our foreign reserves. This is definitely going to impact the Jewellery industry if people start to reduce their gold purchases."

"On the other hand, it will try to maintain the foreign reserves… Earlier, they were not in the opinion to hike any import duty, but it is high time for the government to take this kind of bold step because the geopolitical tension has prolonged and our currency is continuously weakening compared to the dollar… So, we may see pressure in the jewellery company for the next couple of months as their business will shrink,” he said.

The shares of Kalyan Jewellery fell 5.8% intraday on the NSE, while Senco Gold stock plummeted 3.4%.

Further, the shares of Diamond, Sky Gold, P N Gadgil, and Thangamayil Jewellery fell in the range of 3.65% to 4.5%.

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The centre has imposed a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC), taking the effective import tax to 15%.

Meanwhile, India's gold jewellery consumption fell by 19% year-on-year (YoY) to 66.1 tonnes in Q1 CY26, according to the data by the World Gold Council shows.