Shares of Kalyan Jewellers India saw a significant decline following reports of banks in India pausing fresh imports of gold and silver, causing concerns in the jewellery industry. Initially dropping nearly 6% during intra-day trade, the stock later recovered slightly to trade 2.86% lower. Large quantities of precious metals are reportedly stuck at customs as there has been no formal government order authorizing bullion imports.
The halt in imports has also affected silver imports, with approximately 8 tonnes awaiting customs clearance. Kalyan Jewellers’ shares were trading at Rs 416.20, down by 5.47%. Similarly, Titan Company, known for its Tanishq brand, also experienced a decline in its stock price, trading at Rs 4,415.90, down by 1.02%. Market experts suggest that reduced demand from India, a major gold consumer, could impact global gold and silver prices.
Furthermore, this situation might help narrow India’s trade deficit and provide support to the rupee, which has been underperforming among Asian currencies this year. To alleviate pressure on the currency, authorities have advised refineries to reduce spot dollar purchases. The suspension of import orders by Indian banks, coupled with shipments stuck at ports due to the absence of a fresh authorization order, has not been previously reported.
Typically, the Directorate General of Foreign Trade issues an annual directive listing banks authorized by the Reserve Bank of India for gold and silver imports. The previous order, valid until March 31, 2026, is now awaiting a fresh notification, with no official statement from the DGFT regarding the delay.
