Gold jewellery stocks have been in limelight as the precious metal have been rallying at record highs, with sector sentiment boosted by GST 2.0 reforms and investor preference for safe-haven assets amid uncertainties over Trump tariffs.
On Wednesday, jewellery sector stocks were mostly trading flat amid rising gold prices.
Kalyan Jewellers share price were trading in green, was marginally up in Wednesday’s trading session. Meanwhile, Titan, Senco Gold, PN Gadgil Jewellers shares were down up to 1 per cent on September 10.
Other jewellery stocks like Sky Gold and Diamonds shares were trading 3 per cent down.
Despite weak trading, Seema Srivastava, Senior Research Analyst at SMC Global Securities, remains bullish on jewellery stocks, suggesting investors to keep a track on Titan, Kalyan Jewellers and Senco Gold shares.
“Jewellery stocks have attracted investor interest as gold prices stay at record highs, with GST 2.0 reforms influencing sector sentiment. The recent GST overhaul kept the 3% tax on gold and silver jewellery and 5% on making charges, providing predictability for jewellers and consumers. Although the gems and jewellery industry didn’t get direct tax relief, GST rate cuts in other sectors could boost consumer disposable income, indirectly supporting jewellery demand, especially during festive seasons. Key GST 2.0 measures, like benefits for diamond importers and packaging materials, are expected to lower costs for exporters and retailers, improving long-term performance,” Srivastava said.
Should you invest in jewellery stocks?
Anuj Gupta, Director at Ya Wealth, believes that soaring gold prices fuel jewellery stocks if the rally in the yellow metal is for the short term, as it gives margin benefits to jewellery maker companies on their buffer stocks.
“In the long term, as we are witnessing in the current scenario, it affects jewellery demand due to the rise in gold prices and jewellery. However, GST 2.0 will be implemented on 22 September 2025, which may boost the consumption-oriented segment. The positive buzz has further gained after breaking the ice in the India-US trade deal after the social media update from US President Donald Trump and Indian Prime Minister Narendra Modi’s response to it,” Gupta said.
Seema Srivastava of SMC Global Securities further said that top jewellery stocks have delivered strong returns, as investors shift focus from bullion to equities.
“However, challenges remain, including global price volatility and tight margins. Stability in GST rates offers clarity, but future growth depends on company strategies and consumer sentiment. Investing in jewellery stocks makes sense if based on solid fundamentals and market trends, not short-term speculation,” Srivastava added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
