India-US Trade Deal Impact: Gems & Jewellery Stocks Surge Up to 20%| Stock Market Today

The Indian stock market witnessed a strong rally in gems and jewellery stocks on February 3, following the announcement of the India-US trade deal. The move effectively reduced tariffs on Indian exports to the United States, bringing a wave of optimism among investors.

This landmark agreement lowered the US tariffs on Indian imports from 50% to 18%, opening doors for significant growth in export-driven sectors.

Market Performance

The trade deal triggered sharp gains in several key Indian gems and jewellery stocks:

• Goldiam International surged 20%, hitting the upper circuit at ₹357.70 per share.
• Rajesh Exports saw its shares rise 5%, reaching the upper circuit limit.
• Tribhovandas Bhimji Zaveri jumped 10%.
• Titan shares gained nearly 5%.
• Kalyan Jewellers India rallied around 8%.
• Thangamayil Jewellery gained 6% before paring some gains.
• International Gemmological Institute (India) shares climbed 10%, hitting the upper circuit at ₹339.15.

These gains reflect the strong export exposure these companies have to the US market, making them immediate beneficiaries of the tariff reduction.

India-US Trade Deal: Key Details

The agreement was finalized following a direct conversation over the phone between US President Donald Trump and Prime Minister Narendra Modi.

Trump highlighted:

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent.”

This deal comes at a crucial time, placing India’s tariff rate below several major Asian trading partners. It is expected to boost India’s labour-intensive and export-oriented sectors, especially those with high US exposure.

Company Details

Many of these companies have a substantial portion of their revenue coming from US exports:

• Goldiam International: In September last year, the company secured purchase orders worth ₹100 crore for manufacturing and exporting lab-grown diamond jewellery to international clients, primarily from the US.
• Rajesh Exports: A leading player in diamond and jewellery exports.
• International Gemmological Institute (India): Provides certification services for diamonds, coloured gemstones, and studded jewellery.

These companies are positioned to gain from increased US demand, thanks to lower tariffs and improved trade relations.

Summary

The India-US trade deal is a significant milestone for Indian exporters. By reducing US tariffs from 50% to 18%, the agreement is expected to:

• Strengthen Indian export competitiveness in labour-intensive sectors.
• Provide a boost to sectors like textiles, gems & jewellery, garments, leather goods, handicrafts, toys, and auto components.
• Offer Indian exporters the advantage of lower trade barriers compared to several Asian competitors.

For investors, the immediate impact has been visible in stock market gains across major gems and jewellery companies, reflecting renewed confidence in export-driven growth.

Source: Moneycontrol