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Indian jewellery stocks faced a brutal sell-off on Wednesday. The primary trigger for today's market carnage is a sharp revision in customs duties. The government has raised the effective import duty on gold and silver from 6% to 15%. Platinum has also seen a jump to 15.4%.

Reportedly, this is a calibrated intervention to curb non-essential imports. With the West Asia crisis driving crude oil volatility, India is prioritizing its forex for essentials like fuel and defense. This move reverses the duty cuts from the 2024-25 Budget, signaling a shift toward aggressive economic shielding.

Stocks That Fell

The jewellery sector bore the brunt of the announcement. Investors offloaded shares in anticipation of higher raw material costs and "sticker shock" for consumers.

• Titan Company: The industry leader crashed 6.85% to an intraday low of ₹4,001 before stabilizing slightly near ₹4,050.
• Kalyan Jewellers: Shares plunged 5.8%, hitting a low of ₹341.45.
• Senco Gold: Dropped 3.4% as analysts warned of a 10-15% hit to sales volumes.
• Thangamayil Jewellery: Slipped 4.5% in morning trade.
• PN Gadgil & Sky Gold: Fell between 3.6% and 4.5% as the broader sector turned red.

PM’s Appeal and CAD Risks

The duty hike follows a recent appeal by the Prime Minister urging citizens to reduce gold purchases for a year to protect the national interest. India's gold import bill hit a record $72 billion in FY26, putting immense pressure on the Current Account Deficit (CAD).

By raising duties now, the government aims to moderate demand before the festive season. However, industry experts warn that while this helps the rupee, it could revive "grey market" smuggling and impact organized retailers who were just recovering from high global prices.