Gold stocks shine as govt reduces gold, silver import prices; Senco Gold, Kalyan Jewellers, Titan jump up to 14%

Shares of jewellery companies witnessed a broad-based rally on Monday, in an otherwise muted broader market, with most stocks trading in the green, led by Senco Gold, Thangamayil Jewellery, and Kalyan Jewellers.

Senco Gold emerged as the top gainer, surging as much as 14% to ₹330 on the BSE. This was followed by Thangamayil Jewellery , which rallied 10% to ₹3,899 apiece.

Among other key players, Kalyan Jewellers India gained up to 6.5% to ₹419.90, while Titan Company climbed 3.7% to hit an intraday high of ₹4,249.70. Meanwhile, Sky Gold and Diamonds shares rose up to 6%.

Mid-tier players such as PC Jeweller , PN Gadgil Jewellers , and Vaibhav Global rose in the range of 1-3%.

Meanwhile, broader markets witnessed choppy trade, with the BSE Sensex and NSE Nifty swinging between gains and losses. Paring early losses, the Sensex and Nifty 50 were trading marginally higher.

What fuelled rally in jewellery stocks?

The rally in jewellery stocks comes amid firm gold prices and continued investor interest in safe-haven assets, which typically boosts sentiment for jewellery companies.

Sentiment was further lifted after the government’s decision to reduce base import prices for gold and silver amid global turbulence. The move is expected to boost margins and support demand by making these precious metals more affordable for consumers.

The Centre has cut the base import price of silver to $2,427 per kg (₹2,26,096/kg) from $2,820, and lowered gold’s base import price to $1,526 per 10 gm (₹1,42,223) from $1,652 per 10 gm, as per reports.

The revision is seen as positive for jewellers as it lowers procurement costs, improves inventory economics, and could further support demand by making gold and silver relatively cheaper.

Gold, silver deliver strong returns in FY26

In a world unsettled by geopolitical tensions, trade disruptions, currency volatility, and shifting monetary regimes, gold once again reaffirmed its role as a safe-haven asset. In India, gains were further amplified by rupee depreciation, enhancing returns compared to global markets.

On the Multi Commodity Exchange (MCX), gold prices rose from ₹91,316 per 10 grams at the beginning of the year to ₹1,47,450 by the end, delivering a strong 61.5% return. During the year, prices peaked at ₹1,80,779 per 10 grams in January -- nearly doubling from April levels -- before correcting by about 18.4% in the subsequent months.

In international markets, gold climbed from $3,124 per ounce to a peak of $5,597 in January, before easing to $4,559 by the end of the fiscal.

Silver, however, outshone all major asset classes during the year. Domestic prices surged from ₹1,00,398 per kg to a peak of ₹4,20,048 in January, marking an extraordinary 318% rally. Although prices corrected sharply by around 45% thereafter, silver still ended the year at ₹2,29,000 per kg, delivering an impressive gain of about 128%.

In global markets, silver mirrored this trajectory, rising from $34.08 per ounce to $121.67 in January before cooling to $72.77 by the end of March.

The rally was driven by a combination of factors, including relatively low real interest rates, heightened policy uncertainty, and sustained buying by global central banks. In addition, strong investment demand, particularly through gold- and silver-backed ETFs, as well as bars and coins, provided further support to prices.

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