Jewellery stocks, including Titan, Kalyan Jewellers, and Senco Gold, have recently experienced a surge, capturing the attention of investors and market analysts alike. This rally is fueled by a combination of factors, ranging from positive trade agreements to strong quarterly results and optimistic future outlooks.
One significant driver behind the surge in jewellery stocks is the recent India-US trade deal, which brings greater clarity on tariffs for Indian exports. The United States has historically been a major consumer of Indian gems and jewellery, accounting for approximately 30% of the industry's sales. With the U.S. slashing tariffs on Indian goods from 50% to 18%, this agreement is expected to boost confidence among manufacturers and exporters, support organized retailers with cross-border operations, and improve the pricing and demand outlook for jewellery products in the international market.
Kalyan Jewellers, in particular, has seen a substantial boost, with its shares jumping over 7.5% to ₹393.75 following the trade deal announcement. The company's positive third-quarter results for FY26, featuring a 90% year-on-year surge in consolidated net profit to ₹416.30 crore, further contributed to investor confidence. Revenue also witnessed a robust 42% growth, climbing to ₹10,343.42 crore. The India operations of Kalyan Jewellers recorded a strong SSSG (Same Store Sales Growth) of 27%, and the company added 21 new showrooms in India during the quarter. Motilal Oswal Financial Services has reiterated a "Buy" view on Kalyan Jewellers, citing rapid scaling of franchise-led expansion, stronger traction outside southern India, and a rising share of studded jewellery, all of which support margins. The brokerage firm gave a target price of Rs 600, indicating an upside of 58%.
Senco Gold has also experienced a notable rise, with shares increasing by more than 7% to ₹327.45. The company's strong performance during the festive season has fueled investor optimism. Titan Company, a dominant player in the organized jewellery market, has also seen its stock advance, rising over 4.5% to ₹4,141. The company reported approximately 40% growth in quarterly sales, further solidifying its market position.
The broader jewellery sector has benefited from a combination of cultural demand drivers and supportive economic conditions. Festivals such as Diwali and wedding-related buying play a crucial role in sustaining jewellery purchases. Despite a significant rise in gold prices, consumer spending on jewellery has remained resilient. Spot gold prices rose by nearly twelve percent during the December quarter of 2025, driven by global geopolitical uncertainty, expectations of interest rate cuts, and strong central bank buying. However, consumers appear willing to absorb higher prices, particularly for weddings and festive purchases.