Titan, Kalyan Jewellers to Senco Gold: Jewellery stocks rise up to 7.5% after India-US trade deal

India-US trade deal: Jewellery stocks including Titan, Kalyan Jewellers to Senco Gold rose up to 7.5% in intra-day deals on Tuesday, February 5 after India-US finally announced the trade deal.

After prolonged negotiations, U.S. President Donald Trump confirmed that reciprocal tariffs on Indian goods would be reduced to 18%, a steep cut from the earlier 50%.

He said, “We agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and non-tariff barriers against the United States to ZERO,” signalling swift implementation and mutual market access.

Market participants noted that the U.S. remains one of the largest consumption markets for Indian gems and jewellery exports, and the tariff clarity is expected to directly benefit manufacturers, exporters, and organised retailers with global linkages.

Stocks rally across the jewellery pack

Buying was visible across the jewellery segment. Kalyan Jewellers rallied over 7.5% to ₹393.75, Senco Gold rose more than 7% to ₹327.45, PC Jeweller gained 5% to ₹10.90, while Titan Company advanced over 4.5% to ₹4,141 during the session as investors priced in the improved export outlook for the sector.

Tariff cut to revive confidence in the sector

Colin Shah, MD of Kama Jewelry, welcomed the development, highlighting the relief for the sector.

He said, "The news of reciprocal tariffs being slashed to 18% comes as a great relief to the Indian gems & jewellery sector and is well revered. The USA has been a prominent consumer market of Indian Gems & Jewellery and the sentiment had taken a hit due to the tariff implications. This partial relaxation will reinstate confidence in Indian jewellery manufacturers and exporters as well the buyers in the American market.

We are thankful to the Indian government for striking a balanced negotiation and look forward to further relaxation in tariff, in the best interest of India's economic growth."

Recent developments on duties and taxes

In the recent Union Budget, Finance Minister Nirmala Sitharaman kept customs duty rates unchanged for the import of gold and silver.

Currently, gold imports in all forms attract a 6% duty, comprising 5% basic customs duty (BCD) and 1% agriculture infrastructure and development cess (AIDC). Silver imports are taxed at 6% for eligible Indian residents, while others pay 36%, which includes 35% BCD and 1% AIDC. Both metals attract a uniform 3% GST.

Earlier, the Centre had reduced customs duty on gold from 15% to 6% with effect from July 24, 2024, a move aimed at curbing smuggling and supporting organised trade.

Gold and silver prices rebound sharply

Gold and silver prices also rebounded after a severe phase of liquidation that followed the abrupt unwinding of a record rally in precious metals. On the domestic exchange, MCX gold prices were up nearly 4% at ₹1,49,485 per 10 gram.

MCX silver prices hit the 6% upper circuit at ₹2,50,436 per kg on Tuesday, February 3. The announcement of the India–U.S. trade deal added a fresh geopolitical dimension to commodity markets that were already volatile.

While domestic market sentiment was largely driven by the trade breakthrough, investors also reassessed geopolitical risks, currency movements, and the outlook for U.S. monetary leadership. Additionally, strong buying by Chinese retail investors ahead of the Lunar New Year supported demand in precious metals globally, aiding the rebound in prices.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.