Jewellery Stocks Crash...Here’s the Reason!

Crude oil prices are rising sharply amid growing tensions in West Asia. At the same time, the Indian rupee has fallen to fresh record lows against the US dollar. To prevent the country’s current account deficit from worsening, the central government has increased import duties on gold and silver. The decision is now impacting domestic financial markets and investor sentiment.

Market experts believe the higher import duties could reduce demand for precious metals in the coming months. As a result, shares of major jewellery companies witnessed a sharp decline today. Titan Company shares fell by 1.43 percent on the NSE, while Kalyan Jewellers shares dropped by 5.40 percent. Senco Gold shares declined by 0.56 percent, and Thangamayil Jewellery shares slipped by nearly 5 percent. Analysts say jewellery sector stocks may continue to remain under pressure in the near future.

Experts also predict a moderate negative impact on solar panel companies and EMS firms. However, companies involved in providing gold loans are expected to benefit from the current situation. Economists believe the increase in import duties could help control foreign fund outflows and support the recovery of the Indian rupee against the dollar.