Gold jewellery stocks experienced significant gains on Monday following the government's decision to lower base import prices for precious metals. Senco Gold emerged as the top gainer, surging as much as 14% to ₹330 on the BSE, while Thangamayil Jewellery rallied 10% to ₹3,899 apiece. Other major players including Kalyan Jewellers gained up to 6.5% to ₹419.90, and Titan Company climbed 3.7% to hit an intraday high of ₹4,249.70. The broader sector outperformed a flat market, with Sky Gold and Diamonds shares rising up to 6%, and mid-tier players such as PC Jeweller, PN Gadgil Jewellers, and Vaibhav Global rising in the range of 1-3%. The rally was driven by the government's decision to reduce base import prices for gold and silver, directly lowering procurement costs for jewellers and expected to improve inventory management and boost profit margins.
The Centre has implemented significant reductions in base import prices for precious metals, directly benefiting jewellery manufacturers and retailers. The base import price of silver has been reduced to $2,427 per kg (₹2,26,096 per kg) from $2,820, while gold's price has been cut to $1,526 per 10 grams (₹1,42,223) from $1,652. According to Arijit Malakar, equity research analyst at Ashika Stock Broking, as reported by The Economic Times, the reports of base import price reductions lifted jewellery stocks on Monday. Netra Deshpande from Mirae Asset ShareKhan noted that the overall market fall due to West Asia conflict has led to consolidation in gold jewellery stocks, but with global gold prices cooling, Indian jewellers are now restocking at favourable levels. The revision is seen as positive for jewellers as it lowers procurement costs, improves inventory economics, and could further support demand by making gold and silver relatively cheaper.
Several companies reported robust fourth-quarter performance that supported the sector's momentum. As reported by The Economic Times, Senco Gold achieved wedding season-led growth of 46% year-on-year on a standalone basis in the fourth quarter, while PC Jeweller recorded standalone revenue growth of approximately 32% year-on-year during the same period. These strong business updates provided fundamental support for the sector's positive sentiment, with the policy aims to stimulate demand by making precious metals more affordable for consumers and improving the industry's financial health. The real impact of lower gold import prices will be visible in upcoming quarterly results, with investors tracking earnings growth and global gold price trends.
The jewellery sector's performance was further supported by gold's appeal as a safe haven amid global geopolitical tensions and currency volatility. On the Multi Commodity Exchange (MCX), gold prices rose from ₹91,316 per 10 grams at the beginning of the year to ₹1,47,450 by the end, delivering a strong 61.5% return. During the year, prices peaked at ₹1,80,779 per 10 grams in January -- nearly doubling from April levels -- before correcting by about 18.4% in subsequent months. In international markets, gold climbed from $3,124 per ounce to a peak of $5,597 in January, before easing to $4,559 by the end of fiscal. Silver outshone all major asset classes during the year, with domestic prices surging from ₹1,00,398 per kg to a peak of ₹4,20,048 in January, marking an extraordinary 318% rally. Although prices corrected sharply by around 45% thereafter, silver still ended the year at ₹2,29,000 per kg, delivering an impressive gain of about 128%. The divergence between jewellery stocks and the broader market highlights sector-specific drivers, with the BSE Sensex and NSE Nifty seeing choppy trade while jewellery stocks rallied on policy-driven momentum.
Analysts forecast continued growth for the Indian jewellery market, driven by rising incomes, rural demand, and the cultural importance of gold during festivals and weddings. The government's decision to lower base prices comes at a time when India's gold imports rose 28.73% to $69 billion during the April-February period, indicating strong market momentum and robust demand. However, investors should remain cautious about the sustainability of the rally, as the impact depends on future earnings growth, global gold price trends, and domestic demand during festive seasons. While domestic policies help, global gold prices remain a key driver, and any sharp rise internationally could offset local benefits. The organized retail segment is expected to expand significantly, with companies like Kalyan Jewellers maintaining strong brand recall and expansion strategies that continue to attract long-term investors. As per market analysts, this represents a margin-led rally for now—but sustained performance will depend on demand conversion and successful execution of the policy benefits at the company level.
