Metal and jewellery stocks experienced significant recovery on Thursday, with Vedanta leading the gains at 3.33% while jewellery stocks also staged a strong comeback. According to latest reports, PC Jeweller gained 3.10% and Sky Gold, Goldiam and Motisons advanced between 0.80% and 0.93%. Other major players also showed positive momentum, with Vaibhav Global rising 3.33%, Renaissance Global falling 0.88%, while Titan Company and Tribhovandas Bhimji Zaveri traded marginally lower. Senco Gold declined 2.69% to ₹340.60, Sky Gold fell 2.01% to ₹813.65 and Titan declined 1.32% to ₹4,943.75. However, Tribhovandas Bhimji Zaveri and Thangamayil Jewellery bucked the trend, as they surged in trade despite the overall sector weakness. As per NDTV Profit, BSE Sensex was trading 0.74% lower at 74,351 levels as of 10:36 am, reflecting broader market pressure.
The decline in metal and jewellery stocks was driven by a significant surge in US bond yields, with the yield on the US 10-year Treasury bond climbing above 4.9%, its highest level since 2023. As reported by The Economic Times, the move was fueled by rising oil prices and markets bracing for a prolonged war. The US 30-year Treasury yield rose to 5.378%, its highest level since 2007. The move also strengthened expectations of a potential US Federal Reserve rate hike at its meeting next week. The European Central Bank also raised rates, citing higher inflation risks alongside weaker growth. Kranthi Bathini of WealthMills Securities noted that elevated crude prices and their potential implications for the dollar and precious metals were weighing on sentiment, with crude oil at around $110 per barrel potentially strengthening the dollar in the short to medium term. According to NDTV Profit, Kranthi Bathini attributed the pressure partly to profit booking, noting that markets are reeling under pressure with Nifty trading well below the 23,300-mark.
Rising bond yields, soaring oil prices and a stronger dollar create a particularly difficult environment for metal stocks because they simultaneously pressure commodity demand, input costs and profitability. Ajit Mishra, SVP Research at Religare Broking, explained that the trend in jewellery stocks is mixed and largely aligned with the broader market correction, with crude oil prices remaining elevated adding to inflation concerns. Elevated oil prices raise transportation, freight and energy costs across mining and metal production, putting pressure on margins, particularly when companies are unable to fully pass on higher costs through selling prices. A stronger dollar can make metals such as aluminium, copper and steel more expensive for buyers using other currencies, potentially weakening demand and putting downward pressure on international metal prices. According to NDTV Profit, Bathini noted that crude oil at around $110 per barrel could strengthen the dollar in the short to medium term, potentially putting pressure on precious metals such as gold and silver.
Dalal Street is experiencing a glittering gold rush as India's $85 billion (₹7.3 lakh crore) jewellery market — long dominated by family-run shops — is formalising at breakneck speed. Driven by skyrocketing bullion prices and a consumer shift toward trusted brands, a staggering 12 mainboard and nine SME jewellery players have gone public since FY24 to fund ambitious expansion plans. The sector is expected to balloon to $130 billion by 2030, yet the IPO frenzy unfolds at a precarious crossroads. While record-high gold prices are artificially inflating revenues, actual physical demand is shrinking. As Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions and President of the India Bullion and Jewellers Association Ltd (IBJA), points out, steep gold prices are hurting jewellery sales volume, even as sales value keeps rising. According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the rising gold price and the formalisation of the hitherto unorganised industry are the primary factors behind the IPO rush.
Nuvama Institutional Equities highlighted that the industry sustained robust growth momentum, primarily supported by an approximately 60% YoY surge in average gold prices, despite seasonal and macroeconomic headwinds. The brokerage noted challenges including fewer wedding dates, the Adhik Maas period and customs duty hike to 15% in May 2026. Nuvama Institutional Equities, in its post-Q1FY27 assessment, noted that a surge in consumer gold recycling boosted overall retail sales volumes, but the increasing contribution of lower-margin old gold weighed on overall operating profitability. Higher import duties also muted investor demand for physical gold bars and coins. Nuvama downgraded Titan to 'Hold' following a sharp increase in stock price, while emphasizing that higher gold prices can lift jewellery sales but sustained increases can pressure affordability and volumes. With several stocks having rallied sharply in recent months, Friday's decline could partly reflect profit booking rather than fundamental deterioration, but sustained rise in crude oil and stronger dollar could become headwinds for gold prices and precious-metal sentiment.
