Gitanjali Gems plunged 5.73 per cent while PC Jeweller dropped 5.58 per cent at the BSE.
Shares of Shree Ganesh Jewellery House tanked 5.54 per cent while Tribhovandas Bhimji Zaveri was down 4.95 per cent.
"Markets were hoping for a reduction of import duty on gold since the CAD has declined sharply partly due to measures taken by the government and the RBI.
"However, the government instead adopted a wait and watch approach with no changes in import duty structure defying market expectations," said Naveen Mathur, Associate Director Commodities & Currencies, Angel Broking.
Ahead of the Budget, shares of most jewellery retailers had edged higher on hopes that the government may cut import duty on gold.
However, the Union Budget for 2014-15 presented in Lok Sabha today did not have any favorable announcements for the sector.