The Indian stock market witnessed a “sparkling” performance today as major jewellery stocks like Titan, Kalyan Jewellers, and Senco Gold surged up to 12%. This rally was fueled by a dual catalyst: the landmark India-US trade deal and robust Q3 financial results that surpassed analyst expectations.

1. The Strategic India-US Trade Deal: A major breakthrough in trade relations between India and the USA has acted as a booster dose for the sector. Under the new interim trade agreement, the US has slashed reciprocal tariffs on Indian gems and jewellery from a high of 50% down to 18%. Since the US is the largest market for Indian jewelry exports, particularly cut and polished diamonds, this duty cut significantly improves the competitive edge and profitability of Indian retailers with global linkages.

2. Blockbuster Q3 Results: The December quarter, marked by festive and wedding season demand, has been phenomenal for these companies. Kalyan Jewellers reported a staggering 90% rise in net profit to ₹416.30 crore. Senco Gold and Titan also posted strong business updates, with Titan’s international business growing by 79%. The sheer volume of sales during the wedding season has provided a solid floor for these stock prices.

Market Outlook: With the removal of tariff uncertainties and a strong domestic demand pipeline, the outlook for the jewellery sector remains bullish. Analysts suggest that while the long-term prospects are bright due to policy clarity and steady consumer interest, investors should keep a close eye on global gold price volatility.