Jewellery stocks experienced significant declines on Wednesday after the Indian government raised the gold import duty to 15% from 6%. This decision aims to curb gold imports and support the weakening rupee. Kalyan Jewellers saw a 5.8% drop in shares, while Senco Gold fell by 3.4%. Other companies like Sky Gold and Diamond, P N Gadgil, and Thangamayil Jewellery also reported declines ranging from 3.6% to 4.5%. Analysts caution that the increase in gold prices could further reduce consumer demand, particularly affecting purchases during the wedding and festive seasons. Data from the World Gold Council indicates that India's gold jewellery consumption fell by 19% year-on-year to 66.1 tonnes in the first quarter of calendar year 2026 (Q1CY26). The government's move to raise import duties is seen as a negative for jewellery stocks, with experts suggesting that investors should wait for a potential 10% correction in these stocks before making investment decisions. Conversely, shares of gold loan financing companies like Muthoot Finance rose due to the increased value of collateral from higher gold prices, with Muthoot Finance gaining 4% intraday.