Jewellery stocks experienced significant gains on Monday, February 9, following the announcement of an Interim Trade Agreement (ITA) between India and the US. According to reports from Mint, the deal represents the first step towards a broader Bilateral Trade Agreement (BTA) and brought much-needed tariff clarity for export-linked sectors. The gems and jewellery space emerged as a key beneficiary of the framework, with the US remaining one of the largest consumption markets for Indian jewellery exports. The latest surge was accompanied by heavy trading volumes, indicating strong investor conviction in the sector's immediate prospects.
Buying interest was visible across the jewellery segment throughout the trading session. As reported by Business Standard, Goldiam International rallied 18% to ₹429.35 on the back of a three-fold jump in average trading volumes, with the stock having zoomed 43% in the past week following the US-India trade deal announcement. Kalyan Jewellers India soared 12% to ₹424.85 on a near four-fold rise in average trading volumes. Other notable performers included Senco Gold surging 7% to ₹355.75, P N Gadgil Jewellers advancing 6.5% to ₹585.2, Thangamayil Jewellery rising 5.5% to ₹3,559.30, Rajesh Exports climbing 5% to ₹181.75, Renaissance Global gaining 4% to ₹124.95, BlueStone Jewellery and Lifestyle up 3% to ₹443, and Titan Company moving up 2% to ₹4,227.80. The BSE Sensex gained a more modest 0.6% to 84,045 at 10:41 AM, highlighting the specific strength within the precious metals and gems segment.
Under the framework agreement, the US will apply an 18% reciprocal tariff on Indian goods including textiles and apparel, leather and footwear, jewellery, plastics and rubber, organic chemicals, home décor, artisanal products and certain machinery. According to Business Standard, tariffs on cut and polished diamonds (CPDs) could go back to zero subject to the successful conclusion of the interim agreement between both sides. In exchange, the US will receive tariff cuts across sectors including food and agricultural products, along with long-term commitments from India, including $500 billion in planned purchases over five years. The framework also includes the removal of the 25% Russian oil-related duty on Indian imports, subject to India ceasing Russian oil imports and committing to US energy purchases. The newly announced interim trade framework aims to boost bilateral trade and crucially includes provisions to reduce tariffs on cut and polished diamonds, potentially bringing them back to zero.
Industry participants emphasized the significance of tariff clarity for export recovery. As reported by Business Standard, ICICI Securities noted that if tariff rates on gems and jewellery are reduced to zero, it will bring major relief to India's gems and jewellery sector, which counts the US as its largest export market, contributing about 30% of industry sales. The US accounts for roughly 30% of India's total gem and jewellery sales, making the market recovery critical. India's gem and jewellery exports to the United States had contracted by a substantial 44.42% year-on-year to $3.86 billion during April-December 2025, with December 2025 alone showing a 50.44% decline. The waiver of tariffs will help revive exports and restore business confidence across the value chain, with companies like Renaissance Global and Goldiam International identified as key potential beneficiaries of such tariff relief.
Augmenting the trade deal optimism, several companies reported robust financial performances for Q3 FY26. Goldiam International, an integrated manufacturer, posted an 18% year-on-year revenue growth to ₹339.7 crore and a 37.4% surge in profit after tax (PAT) to ₹68.4 crore. Its EBITDA margin expanded to 26.7%, driven significantly by Lab Grown Diamond jewellery exports, which constituted 90.5% of its sales mix during Q3FY26, compared to 80% in Q3FY25. Kalyan Jewellers India showcased even more dramatic growth, with consolidated PAT climbing 90% year-on-year to ₹416.30 crore on a 42% revenue increase to ₹10,343 crore. Kalyan attributed its margin improvement to better product mix, procurement efficiencies, operating leverage, higher share of FOCO revenue, and gains in platinum and silver. Despite the recent surge, valuations across the sector remain varied, with Titan Company trading at a premium P/E of approximately 68.5x, while Goldiam International and Renaissance Global appear comparatively cheaper at 27.5x and 22.3x respectively.
