What is the story about?
Jewellery Stocks in Focus: Stocks related to the jewellery sector will be in focus in today’s and upcoming trading sessions after the government announced
that it has retained the existing Basic Customs Duty (BCD) on gold and silver imports in the Union Budget 2026. Shares of companies such as Titan Company, Kalyan Jewellers, Thangamayil Jewellery, and Senco Gold, among others, are likely to remain under the spotlight. The recent sharp decline in gold and silver prices is also expected to be favourable for jewellers, improving affordability and demand prospects.
What is Basic Customs Duty (BCD)?
Basic Customs Duty (BCD) is the standard tax imposed by the Indian government on goods imported into the country under the Customs Act, 1962. It is levied to regulate imports, protect domestic industries and generate revenue for the government.Budget 2026: No Change in Gold, Silver Import Duty
The Union Budget 2026 has retained the existing customs duty structure on gold and silver imports, maintaining the rates announced last year.Gold imports in all forms will continue to attract a total duty of 6 per cent, comprising 5 per cent Basic Customs Duty (BCD) and 1 per cent Agriculture Infrastructure and Development Cess (AIDC).
For silver, imports by eligible Indian residents will also continue to be taxed at 6 per cent, including 5 per cent BCD and 1 per cent AIDC. However, silver imports by non-eligible persons will continue to attract a significantly higher duty of 36 per cent, consisting of 35 per cent BCD and 1 per cent AIDC.
Continuity in Duty Structure
The Centre had sharply reduced customs duty on gold and silver bars from 15 per cent to 6 per cent with effect from July 24, 2024, in the Interim Union Budget 2024. The Union Budget 2026 has maintained these lower rates, providing continuity and policy stability for the precious metals market.In the Interim Budget, the concessional duty structure was applicable until March 31, 2026. The Union Budget 2026 has now extended this reduced duty regime by another year, until March 31, 2027, offering continued relief to the sector.
Fall in Prices Seen as Favourable for Jewellers
The sharp correction in precious metal prices is expected to be supportive for jewellery companies.As of 11:05 am, gold was trading 2.1 per cent lower, down Rs 2,917 at Rs 1,39,300. Prices hit an intraday low of Rs 1,37,453, marking a decline of nearly 24 per cent from the record high of Rs 1,80,779 touched last week.
Silver prices were down sharply as well, trading 9 per cent lower, or Rs 23,908 down, at Rs 2,41,744. Silver has slipped over 42 per cent from its record high of Rs 4,20,048.
Stocks' Reaction
Titan: Shares of the BSE Sensex company were trading 2.4 per cent lower, down Rs 93.65, at Rs 3,896.95. The stock slipped to an intraday low of Rs 3,892.85, marking a decline of about 2.5 per cent from the previous close of Rs 3,990.60.
Kalyan Jewellers: As of 11:30 am, the jewellery stock was trading 3 per cent lower, down Rs 11.05, at Rs 357.75. The stock declined as much as 3.4 per cent from its previous close of Rs 368.80.
Senco Gold: The BSE 1000 stock also mirrored the broader weakness, falling 2.1 per cent to Rs 299.15. The stock touched an intraday low of 2.3 per cent during today’s trading session.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
