Gold Import Price Cut: Senco Gold, Kalyan Jewellers Stocks Shine

Mumbai, April 6: Indian jewellery stocks rallied sharply in Monday’s session, led by Senco Gold and Kalyan Jewellers, after the government revised gold and silver import prices, boosting sentiment across the sector.

Share price of Senco Gold surged as much as 13%, while Kalyan Jewellers share price climbed around 5% to Rs 414. The move follows a cut in the import reference prices of precious metals, effectively lowering input costs for jewellers and improving margin visibility.

The rally comes amid improving sector fundamentals, with the latest market data indicating continued strength in demand. Senco Gold shares were seen trading around ₹325 levels, supported by strong business momentum and festive-season demand, while Kalyan Jewellers has remained buoyant after recent rallies linked to policy and demand tailwinds.

The government’s move to reduce import prices—used for calculating customs duty—acts as a cost relief mechanism for the industry. Lower landed costs of gold and silver typically translate into better inventory economics and pricing flexibility, especially during high-demand periods such as weddings and festivals.

Market participants noted that jewellery stocks are increasingly reacting not just to global gold prices but also to policy tweaks and domestic demand signals. The latest trigger adds to a series of supportive developments for the sector in recent months, including stable customs duty structures and improving export prospects.

Analysts say the current rally reflects a combination of margin expansion expectations and demand resilience. Even in periods of volatile gold prices, organised jewellery players have managed to sustain growth through brand strength, store expansion, and better inventory management.

Sector-wide momentum has also been visible in recent quarters. Earlier this year, jewellery stocks rallied on the back of strong festive and wedding demand, with companies reporting robust sales growth despite elevated gold prices.

The broader outlook remains constructive. Lower import costs could help companies pass on price benefits to consumers or protect margins, depending on market conditions. At the same time, sustained demand from weddings and urban consumption continues to underpin earnings visibility.

However, analysts caution that the sector remains sensitive to global gold price movements and currency fluctuations, which can quickly alter cost structures. Any sharp rebound in bullion prices could temper the current optimism.

For now, the combination of policy support, steady demand, and improving cost dynamics has put jewellery stocks back in focus, with investors betting that organised players like Senco Gold and Kalyan Jewellers are well positioned to capitalise on the upcycle.

Source:

•  https://www.nseindia.com/
• https://www.nseindia.com/get-quote/equity/KALYANKJIL/Kalyan-Jewellers-India-Limited
• https://www.nseindia.com/get-quote/equity/SENCO/Senco-Gold-Limited