Kalyan Jewellers Faces 40% Plunge Amid Government Gold Purchase Advisory
Kalyan Jewellers shares crash over 40% from peak, erode Rs 27,000 crore investor wealth. Buy, sell or hold?
The Economic Times
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Kalyan Jewellers' shares have dropped over 40% from their peak, erasing approximately ₹27,130 crore ($3.3 billion USD) in investor wealth. The decline follows Prime Minister Narendra Modi's call for citizens to halt gold purchases and an increase in import duties from 6% to 15%. Analysts suggest a cautious outlook as the stock trades at a 52-week low.
- 01Kalyan Jewellers shares fell over 40% from their peak, impacting investor wealth by ₹27,130 crore.
- 02The government's increase in gold import duties and Modi's appeal to pause gold purchases have negatively impacted market sentiment.
- 03The stock is currently trading at a 52-week low, with significant selling pressure observed.
- 04Despite strong quarterly earnings, the company's exclusion from the MSCI Standard Index has further weakened investor confidence.
- 05Analysts recommend caution, highlighting the need for the stock to recover above ₹380 to stabilize sentiment.
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Kalyan Jewellers has seen its shares plummet by over 40%, resulting in a loss of approximately ₹27,130 crore ($3.3 billion USD) in investor wealth. This decline is attributed to Prime Minister Narendra Modi's recent call for citizens to refrain from purchasing gold for a year and the government's decision to hike import duties from 6% to 15%. As a result, the stock hit a 52-week low on Wednesday, reflecting a broader negative sentiment in the jewellery sector. Analysts note that the stock's technical indicators have turned weak, with the Relative Strength Index (RSI) indicating an oversold condition at 30.48. Despite reporting a net profit of ₹410 crore for Q4FY26, more than double the previous year, the company's exclusion from the MSCI Standard Index has further dampened investor confidence. Experts advise caution, suggesting that the stock must hold critical support levels around ₹330 – ₹340 and recover above ₹380 to regain positive sentiment.
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The sharp decline in Kalyan Jewellers' stock could lead to reduced consumer confidence in the jewellery market, potentially affecting sales and employment in the sector.
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