Gold Import Duty Hike: Jewellery Stocks React As Market Turns Volatile; Kalyan Jewellers, Senco Gold, Titan Company & PC Jeweller Under Pressure

Gold Import Duty Hike to 15% Sends Jewellery Stocks Tumbling, Prices Set to Rise:  India has hiked import duty on gold and silver to 15% from 6% effective May 13, 2026. The move was taken to curb gold imports, support the rupee, and protect foreign exchange reserves. But for ordinary people, it simply means gold has become expensive overnight. Since import costs have risen, jewellers will increase gold prices in stores. This means people will have to pay more for the same jewellery. Stock market investors are also reacting, and jewellery company shares are falling. Simply put, buying gold for weddings or festivals will now cost more money. Families may have to revise their plans or choose lighter jewellery to save money.

Gold Import Duty Structure: Why Costs Are Rising

• The revised gold import duty structure now stands at 15% total.
• It includes 10% Basic Customs Duty (BCD) and 5% Agriculture Infrastructure and Development Cess (AIDC).
• Earlier, the combined effective duty was around 6%, making the new hike a sharp increase.
• Higher import duty directly increases the landed cost of gold entering India.
• India depends heavily on imported gold to meet domestic demand, so price impact is immediate.
• Jewellers are expected to pass on higher costs to consumers through increased retail prices.
• This change may lead to higher gold prices in the domestic market in the short term.

Jewellery Stocks React: Mixed But Volatile Trading After Gold Duty Hike

Stock Market Movement in Jewellery Shares (Around 11:45 AM)

After the news, jewellery stocks opened in a mixed and shaky way in the market. Kalyan Jewellers was under heavy selling pressure, which means a lot of investors sold the stock. Senco Gold moved surprisingly in the opposite direction and gained value, which shows there was some buying interest. Titan Company came with a very small pullback, and PC Jeweller moved positively by a small margin.

At around 11:45 AM, the overall market mood was confused. A few investors are genuinely concerned that higher gold prices will lower jewellery demand, especially during the wedding season and festivals. Yet some are betting on short-term moves.

In a nutshell, the market does not know whether to panic or profit at this point, so the stocks are moving up and down in all directions like a classroom before exam results.

Government’s Macro Push: Protect Rupee, Cut Imports

The government will now be levying an import duty of 15% on gold, inclusive of 10% Basic Customs Duty and 5% AIDC, as part of a much-anticipated move to curb gold imports, preserve foreign exchange reserves, and stabilise the rupee in a time of global market turmoil. In short, India wants to cool its gold appetite before the national balance sheet suffers.

But even before this move, demand was already cooling. According to World Gold Council data, India’s gold jewellery consumption fell 19% year-on-year to 66.1 tonnes in Q1CY26. Buyers have already started tightening their belts, and this new duty hike may compress purchasing power even further, making gold buying feel less like a ritual and more like a prudent financial decision.

Also Read: Gold And Silver Rates Today: MCX Gold Erupts After Government Duty Shock; India’s Yellow Metal Market Sees Massive Rally; Check Gold Prices In Your City Now