Jewellery Stocks Rally on Back of US-India Trade Deal
Encouraging Trends in Jewellery Stocks
In the October-December period, international gold prices surged nearly 12%, according to data from investing.com. As of 2026, gold has appreciated over 16% amid a volatile trading landscape. Mumbai’s gold jewellers are witnessing significant gains, fueled by the US-India trade deal that has positively impacted market sentiment across the gems and jewellery sector.
– Kalyan Jewellers experienced a remarkable 14.7% increase, leading this upward trend.
– Motisons Jewellers, Vaibhav Global, Goldiam International, Sky Gold and Diamonds, Thangamayil Jewellery, and P N Gadgil Jewellers reported gains between 9% to 16%.
– Titan Company saw a more modest rise of 3%.
The benchmark Nifty 50 index climbed by 0.7%, with the Nifty Midcap 150 and Smallcap 250 indices advancing 1.6% and 2.6%, respectively.
Factors Behind the Rally
According to Gaurang Kakkad, head of research at Centrum Broking, the recent uptick in jewellery stock prices is attributable to a combination of strong quarterly results from Kalyan Jewellers and P N Gadgil, along with tariff reductions on jewellery exports as part of the India-US bilateral trade agreement. A joint statement released last Friday revealed that the US will reduce tariffs on gems and diamonds exported from India, slashing them from 50% to 18%.
– Harsh Thakkar, a research analyst at Samco Securities, notes that investor optimism is underpinned by expectations that the momentum seen in the October-December quarter will persist into the fourth quarter, particularly driven by the upcoming wedding season.
Impressive Earnings in the Sector
Kalyan Jewellers reported a staggering 60% increase in consolidated net profit for Q3 from July-September, while P N Gadgil achieved a remarkable 115.5% surge in profits for October-December.
– “We anticipate strong results from other key players like Titan Company and Senco Gold as well,” Thakkar mentioned. “Investors might find it advantageous to accumulate shares of leading companies in this segment on price dips.”
Outlook for the Jewellery Sector
Kakkad emphasized that the third quarter reflected strong momentum across jewellery retailers, bolstered by rising gold prices and increased wedding-related purchases. As previously mentioned, international gold prices experienced almost a 12% rise during the October-December period, maintaining a robust performance in 2026.
– The structural dynamics remain favorable, with organized jewellers capturing market share from the unorganized sector and expanding into new categories such as lab-grown diamonds and lightweight jewellery.
Kakkad sees Titan as a top pick in the sector: “Despite the volatility in gold prices, we have seen healthy Key Performance Indicators (KPIs) in January, including foot traffic and consumer interest. A potential correction in gold prices may create opportunities for consumers, sustaining strong demand into the fourth quarter.”
In summary, the boost in jewellery stocks is closely tied to the positive implications of the US-India trade deal, encouraging market sentiment and investor confidence. As we move forward, the continued growth in this sector appears promising, particularly as seasonal demand peaks.