Gold Price Today: Impact on Jewellery stocks

13 May 2026 , 11:54 AM

Jewellery stocks remained under heavy selling pressure for the third consecutive trading session on Wednesday after the government increased import duties on gold and silver, raising concerns over weaker consumer demand and higher input costs for jewellers.

The sharpest decline was witnessed in shares of Sky Gold Ltd, which plunged more than 11 per cent during intraday trade. Other major players in the sector also witnessed significant losses, reflecting widespread investor nervousness over the impact of the policy move on the gems and jewellery industry.

Shares of Thangamayil Jewellery fell approximately 5 per cent, while that of Kalyan Jewellers India, and declined up to 4%.

The sell-off came after the government announced an increase in import duties on gold and silver to 15 per cent from the earlier 6 per cent. The move is aimed at curbing rising imports of precious metals, which have contributed to widening trade deficits amid escalating geopolitical tensions in West Asia.

Market analysts believe the higher duties could lead to increased jewellery prices in the domestic market, potentially dampening consumer demand, especially during the upcoming festive and wedding seasons. Investors are also worried that higher raw material costs may squeeze profit margins for jewellery companies if they are unable to fully pass on the burden to consumers.

The Indian jewellery industry, heavily dependent on imported gold and silver, is particularly sensitive to changes in import duties and global bullion prices. Any increase in duties generally raises procurement costs for manufacturers and retailers, while also affecting inventory management and working capital requirements.

Despite the near-term pressure, some analysts believe organised jewellery retailers could recover over the longer term due to strong brand presence, expanding retail networks and continued consumer preference for trusted jewellers.

However, for now, market sentiment remains cautious as investors assess the broader impact of the government’s move on demand, profitability and overall sector growth.

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