Titan, Kalyan, Senco Gold shares in focus after customs duty hike on gold imports, ₹50,000 crore rout

Shares of Titan Ltd., Kalyan Jewellers Ltd., Senco Gold Ltd., and other jewellery manufacturers will be in focus yet again on Wednesday, May 13, after the government hiked the import duty on imports of gold and other precious metals overnight from 6% earlier to 15%.

The Duty Hike

The government has hiked the customs duty on Gold, Silver, Platinum and jewellery component imports to 10% from 5% earlier.

In addition to this, it has also increased the cess on these imports to 5% from the original 1%.

The move comes after Prime Minister Narendra Modi appealed to Indians over the weekend to not buy gold for a year in order to conserve the country's forex reserves.

With this move, Gold is now expensive by ₹12 lakh per kilogram and Silver will be expensive by ₹22,000 per kg. The hike in duties is effective immediately.

Sources To CNBC-TV18

Sources also told CNBC-TV18 that the revenue department believes a duty hike might not act as a deterrent for importers, and that precious metal imports are more on a demand basis.

Senco Gold To CNBC-TV18

In an interaction with CNBC-TV18 on Wednesday, Senco Gold's MD & CEO Suvankar Sen said that the move will result in a 10% to 15% decline in the import of gold, while encouraging customers at the same time to exchange old gold in return for new jewellery.

He went on to add that he does not see much risk to the company achieving its value growth guidance of 20% to 25% for financial year 2027.

Jewellery Stocks Under Pressure

Titan, Kalyan Jewellers and Senco Gold have already sold off over the last two sessions, with declines ranging from 11% to as high as 15% across Monday and Tuesday.

Cumulatively, these Jewellery companies have lost over ₹50,000 crore in market capitalization over the last two sessions.