Jewellery Stocks Decline Following Import Duty Hike on Gold and Silver
Titan, Kalyan Jewellers to Senco Gold: Jewellery stocks slump up to 6% after gold, silver import duty hike
Mint
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Jewellery stocks, including Titan Company and Kalyan Jewellers, fell by up to 6% on May 13, 2023, after the Indian government raised customs duties on gold and silver from 6% to 15%. Analysts predict this move will dampen demand and impact profit margins in the sector.
- 01Jewellery stocks fell up to 6% after a customs duty hike.
- 02The Indian government increased import duties on gold and silver to 15%.
- 03Analysts expect a slowdown in demand and pressure on profit margins.
- 04Prime Minister Modi's appeal to avoid gold purchases has added to market concerns.
- 05Stocks like Titan and Senco Gold may outperform if positive developments occur.
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On May 13, 2023, jewellery stocks experienced a significant decline, with shares of major players like Titan Company and Kalyan Jewellers dropping by up to 6%. This slump followed the Indian government's decision to increase customs duties on gold and silver from 6% to 15%. Analysts, including Rajesh Bhosale from Angel One, indicated that this hike is likely to dampen consumer demand and squeeze profit margins for jewellery companies. The market sentiment has also been affected by Prime Minister Narendra Modi's recent appeal urging citizens to refrain from purchasing gold for a year. Bhosale cautioned investors to avoid aggressive bets in the jewellery sector for now, although he noted that stocks like Titan and Senco Gold could outperform if any positive news emerges in the future.
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The increase in import duties could lead to higher prices for gold and silver jewellery, affecting consumer purchasing decisions and potentially reducing sales for jewellery retailers.
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