Jewellery stocks fall as gold duty jumps to 15% (2026)

What triggered the sell-off in jewellery shares

Jewellery stocks came under pressure in Wednesday’s trade after the Centre raised import duties on gold, silver and other precious metals through a late-night Finance Ministry notification. The revised duty structure took effect from May 13, 2026. The market reaction was swift because the change directly increases raw material costs for jewellers and manufacturers that depend on imported bullion. The move also hit sentiment because investors were already positioned cautiously amid expectations of taxation changes on gold, according to Kotak Institutional Equities.

The selling extended a weak run for the sector, with reports indicating the decline marked the third session of losses for several jewellery counters. Some stocks slipped sharply in early trade before stabilising, while others stayed relatively resilient. Overall, the sector’s reaction tracked the market’s immediate assessment that higher import taxes can lift domestic bullion prices and potentially affect consumer demand.

What exactly changed in import duty on gold and silver

Under the revised duty structure, the government imposed a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC) on imports of gold and silver. This takes the effective import tax to 15% from the earlier 6%. The notification applies from May 13.

The duty hike was framed in market reports as a step aimed at curbing imports and supporting the rupee. Separately, there were references to a broader policy backdrop in which Prime Minister Narendra Modi urged citizens to buy less gold to protect foreign exchange reserves. Regardless of the policy motivation, the mechanical outcome for the listed jewellery sector is higher landed costs for bullion.

Stocks in focus: how key jewellery names traded

Among the key counters, Kalyan Jewellers was among the biggest losers in early trade. One update showed Kalyan Jewellers down 4.33% at Rs 346.15. Another market update cited the stock falling 5.62% to Rs 341.45 on the NSE, and a separate low of Rs 340 intraday.

Titan Company was relatively steadier versus peers in the initial reaction, with one snapshot showing it down 0.43% at Rs 4,037.80 and another indicating a fall closer to 1% to 1.5% in early trade. Senco Gold was reported marginally lower at Rs 312.15 (-0.19%) in one update, while another cited a drop of 1.6% to Rs 307.80 and an intraday low around Rs 302. PC Jeweller was also in the red, with a reported move of -0.94% to Rs 8.40.

The broader pack: Thangamayil, PN Gadgil and others

Thangamayil Jewellery was also among the names under pressure, with a reported decline of 2.43% to Rs 3,580.70. PN Gadgil Jewellers showed mixed ticks across updates, ranging from marginally higher at Rs 627.40 (+0.02%) to down around 1% at Rs 620.95.

Some reports also referenced declines in Sky Gold and Diamond, PN Gadgil, and Thangamayil in the range of 3.6% to 4.5% during the session. The broader picture was consistent: a duty-driven repricing across organised and smaller listed players exposed to bullion price moves.

What the notification covers beyond bullion

The revised notification was not limited to gold and silver bars. It also covers platinum, jewellery findings and precious metal-linked industrial imports. In one update, platinum and related precious metal components used in manufacturing, such as hooks, clasps, clamps, pins and screw backs, were noted as attracting a 10% duty.

Another set of details highlighted category-specific rates: import duties on gold and silver jewellery findings at 5% and duties on platinum findings at 5.4%. It also cited concessional duty of 4.35% for spent catalysts or ash containing precious metals, subject to compliance conditions. These line items matter for manufacturers because findings and components can affect working capital costs and supply chain pricing.

Why higher duty can pressure demand and margins

Market participants flagged that higher domestic gold prices, following the duty hike, may hurt demand by delaying discretionary purchases. Reports specifically pointed to wedding and festive segments as potentially sensitive to price jumps. For jewellers, the operational challenge is whether to absorb part of the cost increase or pass it through to customers.

Either route can strain near-term profitability or volumes. Passing on prices can slow walk-ins and conversions, while absorbing costs can compress margins if retail pricing lags bullion costs. This is also why the duty change quickly translated into stock volatility despite the broader market being relatively stable, with the Nifty50 down 0.14% around 9:35 AM in one update.

What analysts and brokerages highlighted

Kotak Institutional Equities was cited saying the market had been fearing certain taxation measures on gold. The duty hike then confirmed those concerns, with the effective import tax moving to 15% from 6%. Another view in the coverage suggested that some investors saw the recent selloff in select jewellery counters as excessive, which helped Titan and a few others trade flatter at points.

One report also attributed a cautionary stance to an analyst comment suggesting investors should wait for another 10% correction in jewellery stocks before taking an investment decision. This reflects how quickly sentiment can shift when policy changes alter the cost structure for consumer-facing businesses.

Key numbers at a glance

What investors may track next

Investors will watch how quickly domestic gold and silver prices adjust after the duty change, and whether retailers recalibrate making charges, promotions, or inventory strategies. The market will also track any further clarifications on category-specific duty rates for components and industrial imports covered by the notification.

For listed jewellers, the next key datapoints will likely be commentary on volume trends in wedding and festive buying and any indication of margin resilience in a higher-cost environment. With the revised rates already effective, near-term price action in jewellery stocks is likely to remain sensitive to bullion prices and policy cues.

Conclusion

Jewellery stocks slipped on May 13, 2026 after India raised the effective import tax on gold and silver to 15% from 6%, via a 10% basic customs duty and 5% AIDC. The notification also widens coverage to platinum and several jewellery-related components, reinforcing the cost-side impact for the sector. The immediate market response reflected concerns over higher domestic bullion prices, potential demand softness, and margin trade-offs for retailers. The next leg of investor focus will be on how companies manage pricing and volumes now that the duty hike is in force.