joint statement on an Interim Trade Agreement, a move that brought long-awaited tariff visibility for export-heavy sectors. Stocks like Kalyan Jewellers hit 10% upper circuit, while others like Titan, Sky Gold are seeing steady upmove.
The gems and jewellery business sits close to the centre of this trade corridor, and the announcement immediately changed how the market read near-term earnings potential. Stocks with overseas exposure moved first, followed by broader buying across listed jewellers as expectations around exports, margins, and volumes improved in a single session.
How individual jewellery stocks reacted
Buying interest spread quickly across the pack. Kalyan Jewellers jumped more than 11%, while Senco Gold rose close to 7%. PN Gadgil Jewellers gained around 6%, and Thangamayil Jewellery advanced over 5%. PC Jeweller added about 4%, while Titan Company moved higher by more than 2% as the market factored in stronger export visibility.
Motilal Oswal on Kalyan Jewellers: Sees 58% upside potential
Brokerage commentary added fuel to the move. Motilal Oswal Financial Services reiterated its Buy view on Kalyan Jewellers after the December-quarter numbers beat expectations across revenue and profitability.
The firm pointed to rapid scaling of franchise-led expansion, stronger traction outside southern India, and a rising share of studded jewellery, all of which support margins. It also noted steady momentum through the festive season, with like-for-like growth crossing 30% in the month leading up to Diwali. The brokerage gave a target price of Rs 600, indicating an upside of 58%.
Debt reduction plans and store expansion added to the positive read-through. Kalyan has already pared borrowings during the year and aims to reduce debt further by March 2026, while continuing to add stores in India and overseas markets such as the Middle East and the US.
Why the trade agreement lifted the sector
The US is among the biggest end markets for Indian jewellery, particularly for cut and polished diamonds and gold-studded products. Under the proposed arrangement, reciprocal tariffs have been set at 18% on categories that include jewellery, while the agreement also opens the door for tariff removals on a wider product list over time. That combination reduced uncertainty for exporters who had seen orders slow after earlier trade frictions pushed costs higher.
Industry executives said the clarity itself mattered as much as the numbers. With tariff rules now spelled out, manufacturers and organised retailers can plan shipments, pricing, and inventory without guessing policy outcomes every quarter. According to Kama Jewelry, managing director Colin Shah said the zero-duty move on gems and diamonds was welcomed across the trade, especially after exports of cut and polished diamonds had fallen by more than half during the tariff period.
For jewellery companies with US-facing businesses, that wider stability fed into expectations of steadier demand over the coming quarters.