Market Performance
Jewellery stocks saw a sharp intra-day rally on Tuesday, February 5, with gains reaching up to 7.5%. Investors responded enthusiastically to the latest India-US trade deal, which provides greater clarity on tariffs for Indian exports.
- Kalyan Jewellers jumped over 7.5% to ₹393.75
- Senco Gold rose more than 7% to ₹327.45
- PC Jeweller gained 5% to ₹10.90
- Titan Company advanced over 4.5% to ₹4,141
The broad-based buying reflected renewed optimism in the jewellery sector, driven by improved export prospects.
Main News
After months of negotiations, the United States confirmed a reduction in reciprocal tariffs on Indian goods. Tariffs will now stand at 18%, down from earlier levels of 50%.
U.S. President Donald Trump stated, “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% to 18%. They will likewise move forward to reduce their Tariffs and non-tariff barriers against the United States to ZERO.”
This announcement marks a significant step toward smoother trade relations and is expected to benefit exporters and organised retailers with global linkages.
Impact on Jewellery Sector
The U.S. has long been one of the largest consumers of Indian gems and jewellery. The tariff clarity is expected to:
- Boost confidence among manufacturers and exporters
- Support organised retailers with cross-border operations
- Improve pricing and demand outlook for jewellery products in the international market
The trade deal comes at a time when the sector is already recovering from market volatility and liquidations in precious metals.
Recent Developments on Duties and Taxes
India’s recent Union Budget kept customs duty rates for gold and silver imports unchanged:
- Gold imports: 6% duty (5% basic customs duty + 1% Agriculture Infrastructure & Development Cess)
- Silver imports: 6% for eligible residents, 36% for others (35% BCD + 1% AIDC)
- Both metals attract 3% GST
The government had earlier reduced gold customs duty from 15% to 6% from July 24, 2024, a move aimed at supporting organised trade and limiting smuggling.
Gold and Silver Prices
Precious metals saw a rebound in domestic markets following a period of steep liquidation:
- MCX gold: ₹1,49,485 per 10 grams, up nearly 4%
- MCX silver: ₹2,50,436 per kg, hitting the 6% upper circuit
The India-US trade deal added a positive geopolitical dimension, reinforcing market sentiment alongside global factors like currency movements and demand from Chinese retail investors ahead of the Lunar New Year.
Company Details
- Titan Company: Leading Indian jewellery and lifestyle brand, stock up 4.5%
- Kalyan Jewellers: Major retail jewellery chain, stock up 7.5%
- Senco Gold: Kolkata-based jewellery retailer, stock up 7%
- PC Jeweller: National jewellery player, stock up 5%
Summary
The recent India-US trade deal has given the jewellery sector a clear boost. Reduced reciprocal tariffs are likely to improve export prospects, instil confidence in manufacturers and retailers, and support recovery in gold and silver markets. The combination of policy clarity, stable import duties, and rising domestic and international demand has led to strong intra-day gains across key jewellery stocks.
Source: Livemint
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