Jewellery stocks, including Titan, Kalyan Jewellers, Senco Gold and PC Jeweller rallied up to 12% on Monday, February 9, after India and the US released a joint statement outlining a framework for an Interim
Trade Agreement (ITA) — the first step towards a broader Bilateral Trade Agreement (BTA).
The announcement brought much-needed tariff clarity for export-linked sectors, with the gems and jewellery space emerging as a key beneficiary.
The US remains one of the largest consumption markets for Indian jewellery exports, and market participants said the deal could directly support manufacturers, exporters and organised retailers with global exposure. Investor sentiment strengthened as the framework also signalled potential tariff removals on a wider set of products over time, improving the medium-term outlook for the sector.
Under the framework, the US will apply an 18% reciprocal tariff on Indian goods such as textiles and apparel, leather and footwear, jewellery, plastics and rubber, organic chemicals, home décor, artisanal products and certain machinery, while outlining the potential removal of reciprocal tariffs on a broader product basket.
In exchange, the US will receive tariff cuts across sectors including food and agricultural products, along with long-term commitments from India, including Rs 500 billion in planned purchases over five years. Additionally, the 25% Russian oil-related duty on Indian imports will be removed, subject to India ceasing Russian oil imports and committing to US energy purchases, with a monitoring mechanism in place.
Stocks rally across the jewellery pack
Buying interest was visible across the jewellery segment through the session.
Kalyan Jewellers surged over 11.7% to Rs 424.30, while Senco Gold climbed nearly 7% to Rs 355.75. P N Gadgil Jewellers advanced about 6% to Rs 582.15, and Thangamayil Jewellery rose over 5% to Rs 3,555.30. PC Jeweller gained around 4% to Rs 10.56, while Titan Company moved up over 2% to Rs 4,227.80, as investors priced in a stronger export outlook following the trade agreement framework.
Boost for the sector
Industry participants said the clarity on tariffs could help revive export volumes that were hit hard in recent years and restore confidence across the value chain.
“The announcement of zero tariff on gems & diamonds is a momentous one and well rejoiced by the Indian gems & jewellery sector. India being the global hub for diamond processing, was impacted severely due to the trade tariffs, where trade had dropped over 60% when it comes to cut & polished diamonds. The waiver of tariff will help revive exports and reinstate the sparkle in business,” said Colin Shah, Managing Director, Kama Jewelry.
Shah added that the industry is grateful to the Indian government and the Ministry of Commerce for the negotiations, noting that the move would not only provide a strong boost to the sector but also contribute meaningfully to the broader goal of Aatmanirbhar Bharat by adding long-term value and supporting domestic manufacturing and exports.
