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Mumbai: Jewellery stocks came under selling pressure on Friday, September 11, with several prominent names falling up to 4% as investors booked profits after a recent rally. PC Jeweller led the decline, followed by Kalyan Jewellers, Senco Gold, Sky Gold and other stocks.

The weakness also came against a broader market correction. Elevated crude oil prices added to concerns about inflation, the dollar and the outlook for precious metals, weighing on sentiment across the jewellery sector.

PC Jeweller fell as much as 4.33% to Rs 13.23, making it the biggest loser among the jewellery stocks tracked in the report. Kalyan Jewellers India declined 4.27% to Rs 589.30, while Motisons Jewellers dropped 2.49% to Rs 15.64.

Goldiam International fell 2.16% to Rs 321.05, while Vaibhav Global declined 2.08% to Rs 211.55. Senco Gold was down 2.69% at Rs 340.60, and Sky Gold fell 2.01% to Rs 813.65. Titan Company also declined 1.32% to Rs 4,943.75.

PC Jeweller, Kalyan lead the fall

The selling was particularly sharp in PC Jeweller and Kalyan Jewellers. Both stocks had witnessed significant investor interest during the recent rally, making them vulnerable to profit-taking as the broader market weakened.

At around 10:36 am, the BSE Sensex was trading 0.74% lower at 74,351, indicating that the pressure was not limited to jewellery companies. Tribhovandas Bhimji Zaveri and Thangamayil Jewellery were among the stocks that bucked the broader sector trend and traded higher.

Market experts attributed Friday’s weakness largely to a combination of profit booking and broader macroeconomic concerns rather than a sudden deterioration in the jewellery sector’s fundamentals.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said investors were booking profits after the recent rally. He also pointed to elevated crude oil prices and their potential impact on the dollar and precious metals.

Why are jewellery stocks falling?

The broader market correction was one of the immediate reasons behind the decline. Ajit Mishra, SVP Research at Religare Broking, said the movement in jewellery stocks was largely in line with the broader market trend.

Crude oil prices have also become an important variable. According to Bathini, crude prices around $110 a barrel could strengthen the US dollar over the short to medium term. A stronger dollar can put pressure on precious metals such as gold and silver, potentially affecting investor sentiment towards jewellery and precious-metal- stocks.

This does not necessarily mean that demand for jewellery has suddenly weakened. Instead, investors appear to be reassessing valuations after the strong performance of several stocks.

Gold prices remain a key factor

Gold remains one of the most important variables for jewellery companies. Nuvama Institutional Equities, in its post-Q1FY27 assessment of the sector, said the industry maintained strong growth momentum, supported primarily by an approximately 60% year-on-year increase in average gold prices.

However, the brokerage also highlighted several challenges. These included fewer wedding dates, the Adhik Maas period and an increase in customs duty to 15% in May 2026.

Higher gold prices can have a mixed impact on jewellery companies. On one hand, the value of jewellery sales and reported revenue can rise when the price of gold increases. On the other hand, expensive gold can make jewellery less affordable for consumers and affect purchase volumes.

Consumers may respond by buying lighter jewellery, choosing lower-karat products or using exchange schemes and other payment options.

Gold recycling supports demand

Another important trend highlighted by Nuvama is the increase in consumer gold recycling. Higher recycling activity has helped support overall retail sales volumes despite challenging market conditions.

However, the brokerage noted that a larger contribution from old gold can weigh on operating profitability because recycled gold can carry lower margins.

The sector is therefore facing a delicate balance. Retailers need to maintain sales volumes while managing margins in an environment of elevated gold prices and changing consumer purchasing behaviour.

Nuvama downgrades Titan to ‘Hold’

The broader jewellery sector continues to attract investor interest, although valuations have become an important consideration.

Nuvama continues to favour the jewellery business but downgraded Titan Company to ‘Hold’ after a sharp increase in its share price.

The move highlights the difference between the long-term outlook for the jewellery industry and the short-term performance of individual stocks. A strong business outlook does not necessarily mean that every stock will continue rising at the same pace.

For investors, earnings growth, valuations, margins, store expansion and consumer demand remain important factors alongside gold prices.

What lies ahead for jewellery stocks?

The immediate outlook for jewellery stocks is likely to depend on several factors, including the direction of gold prices, consumer demand, the upcoming festive and wedding season, gold recycling and operating margins.

The recent decline could largely represent profit booking after a rally, rather than a fundamental deterioration in the jewellery sector. However, a sustained rise in crude oil prices and a stronger dollar could create additional pressure on gold and silver, which could affect sentiment towards jewellery stocks.

Investors will therefore be watching whether the sector can sustain sales growth despite elevated gold prices. Festive-season demand and wedding purchases could provide an important test for retailers in the coming weeks.

For now, Friday’s sell-off shows that jewellery stocks remain sensitive not only to company-specific developments but also to movements in gold, crude oil, currency markets and broader equity sentiment.