Jewellery stocks are expected to remain in focus when the bell rings at 9:15 am today after the Central government announced a customs duty hike on several precious metal-bearing imports, with the revised rates becoming effective from midnight tonight.
The move means the market will react to the development when trading resumes at 9:15 am, potentially keeping stocks such as Titan, Kalyan Jewellers, Senco Gold, Thangamayil Jewellery, PN Gadgil Jewellers and other gold-linked counters under pressure.
In a notification issued on May 12, 2026, the Ministry of Finance increased customs duty from 5% to 10% on multiple categories of precious metal waste, scrap and ash imports. The notification also introduced a revised duty structure for spent catalyst and ash containing precious metals.
Market participants believe the policy change reinforces the government’s broader intent to curb non-essential gold and precious metal imports at a time of elevated global gold prices and rising trade-related concerns.
The development comes just days after Prime Minister Narendra Modi urged citizens to avoid unnecessary gold purchases for one year and focus instead on productive economic participation and conservation efforts. The Prime Minister’s comments had already triggered a sharp selloff in jewellery counters earlier this week. (CNBC-TV18)
Analysts say investors may now assess whether higher duties, combined with softer consumer sentiment around discretionary gold purchases, could impact jewellery demand, store footfalls and revenue growth expectations for organised retailers.
Titan Company could remain among the key stocks in focus given that jewellery contributes a dominant share of the company’s overall business through its Tanishq brand. Kalyan Jewellers, Senco Gold and regional jewellery chains may also witness heightened volatility amid concerns that prolonged high gold prices and policy signals discouraging discretionary buying could weigh on sales momentum.
Historically, India has used customs duties as a policy tool to regulate gold imports and manage the current account deficit, given the country’s position as one of the world’s largest consumers of gold.
Investors will now watch for the sector’s reaction once markets open, particularly after jewellery stocks witnessed sharp declines in the previous session following the Prime Minister’s remarks.