Kalyan Jewellers, Senco Gold Shares Fall After Centre Raises Gold Import Duty

Jewellery stocks traded lower on Wednesday, May 13, after the Centre increased import duties on gold, silver and other precious metals, making imports significantly more expensive for the sector.

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Among the major losers, Kalyan Jewellers declined 4.33% to ₹346.15, emerging as the worst performer among listed jewellery stocks. Titan Company slipped 0.43% to ₹4,037.80, while Senco Gold traded 0.19% lower at ₹312.15.

PC Jeweller also traded in the red, falling 0.94% to ₹8.40. However, P N Gadgil Jewellers edged marginally higher by 0.02% to ₹627.40.

The decline in jewellery shares came after the Finance Ministry issued a late-night notification revising the import duty structure on precious metals.

Import Duty On Gold, Silver Raised To 15%

Under the revised structure, effective from May 13, the government imposed a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC) on imports of gold and silver.

The revised notification also includes platinum, jewellery findings and industrial imports linked to precious metals.

Higher import duties are expected to increase procurement costs for jewellery companies that depend heavily on imported raw materials. The sharp rise in import tax also weighed on investor sentiment across listed jewellery counters during the trading session.

The government’s decision comes amid broader efforts to curb non-essential imports and conserve foreign exchange reserves during ongoing global market volatility.

Gold, Silver Prices Hit Upper Circuit On MCX

Domestic bullion prices rallied sharply following the duty hike announcement.

Gold prices on the Multi Commodity Exchange of India (MCX) hit the 6% upper circuit at ₹1.62 lakh per 10 grams. Silver prices also locked in the 6% upper circuit at ₹2.95 lakh per kg.

In the international market, spot silver rose 1% to $87.40 per ounce, while spot gold traded near $4,713.39 per ounce. U.S. gold futures for June delivery gained 0.7% to $4,721.80 per ounce.