Gold Duty Hike Hits Jewellery Shares; Kalyan Jewellers Drops Over 4%

Jewellery stocks came under selling pressure on Wednesday after the Centre raised import duty on gold, silver and other precious metals through a late-night Finance Ministry notification, a move that is likely to increase import costs and impact demand sentiment in the sector.

Among major players, shares of Kalyan Jewellers fell 4.33% to Rs 346.15, making it the top loser among listed jewellery firms. Titan Company slipped 0.43% to Rs 4,037.80, while Senco Gold traded 0.19% lower at Rs 312.15.

Under the revised structure, effective May 13, the government has imposed a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports, taking the total effective duty to 15% from the earlier

6%.

The updated notification also includes platinum, jewellery findings and several precious metal-related industrial imports. The step is seen as part of the government’s broader strategy to curb non-essential imports and protect foreign exchange reserves amid rising global uncertainty.

Meanwhile, bullion prices on MCX witnessed a sharp rally after the announcement, with gold and silver contracts hitting upper circuits as traders reacted to the sudden jump in import duties.