The festive season is already underway with Navratri in progress, while Diwali, Dhanteras and the wedding season lie ahead. According to reports from Upstox, gold and jewellery stocks are likely to remain in focus as the yellow metal holds cultural and emotional significance for Indian households, particularly during festivals and weddings. Business updates for the September quarter (Q2 FY27) from several listed jewellers have reinforced optimism about demand, with companies also expressing confidence in the upcoming festive and wedding season. The latest developments show diamond jewellery demand expected to rise 15-20% during the festive season, as reported by Zee Business Research, with buyers increasingly opting for lighter, more affordable designs priced between ₹10,000 and ₹1 lakh.
Gold prices fell for the third consecutive session on Wednesday, declining by ₹1,800 to ₹1.5 lakh per 10 grams for 99.9% pure gold in the national capital, according to the All India Sarafa Association. As reported by Upstox, prices stood at ₹1.52,600 per 10 grams in the previous session. Silver prices also extended their decline, falling ₹5,000 to ₹2.21 lakh per kilogram from the previous close of ₹2.26 lakh per kilogram. The latest declines add to the correction in domestic bullion prices from their August highs, with a stronger rupee making dollar-priced bullion cheaper to import, weighing on domestic prices. However, gold prices have risen 54% over the past year, creating a complex pricing environment for jewellery retailers.
Several listed jewellery companies reported healthy year-on-year growth in their Q2 FY27 business updates, despite some moderation in demand towards the end of the quarter as the festive calendar shifted into Q3. According to Upstox reports, Titan's jewellery business grew 21% year-on-year, Kalyan Jewellers' India revenue rose 27%, Senco Gold's revenue increased 31%, and PC Jeweller reported 28% growth in consolidated revenue. These updates point to resilient demand across several players, with investors now looking for sustained growth in sales volumes, same-store sales and margins as the festive and wedding season progresses. Senco Gold shares remained under pressure, ending the session at ₹331.60 per share, down 0.88% from the previous close at ₹334.55 per share.
Diamond jewellery demand is expected to rise 15-20% during the festive season, driven by changing consumer preferences and affordability factors. As reported by Zee Business Research, smaller diamonds have fallen around 25% in price, making diamond jewellery more attractive for buyers looking for designs within limited budgets. Earrings, rings and pendants priced between ₹30,000 and ₹1 lakh are among the preferred choices, with buyers moving towards lighter necklaces with 60-gram designs gaining preference over heavier pieces weighing around 100 grams. Generation Z accounts for 51% of the growth in diamond jewellery sales, with customers increasingly looking for contemporary designs that offer more choices at affordable prices. The trend reflects changing buying habits, as consumers focus on price, design and ease of everyday use rather than only traditional heavy jewellery.
Rising inflation could add to pressure on household budgets during the festive season, with India's retail inflation rising to 5.54% in September 2026 from 4.83% in August, while food inflation climbed to 7.74%, according to government data reported by Upstox. Additionally, Prime Minister Narendra Modi's appeal to Indians to avoid buying gold for a year, including for weddings, made in May amid concerns over the rupee and foreign exchange reserves, seeks to moderate demand for gold imports. The shift in the festive calendar has moved some demand from Q2 into Q3 compared with last year, making the October-December quarter particularly important for jewellery companies. However, gold prices remaining a concern for buyers continues to influence purchasing decisions, with the December quarter being an important test for sustained festive and wedding-season demand.
